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How to save money for child’s education

More than half of parents of schoolchildren are either already saving for their child’s higher education (29%) or planning to start in the near future (27%). Such data were obtained by the insurance company Rosgosstrakh Life during a survey. Gulnara Orlova, director of insurance products and customer experience development at Rosgosstrakh Life Insurance Company, told Gazeta.Ru what financial instruments would help parents most effectively save money for their child’s education after school.
How to save money for child’s education

“Qualifying for free tuition at a university is the most desirable option for many parents, but even in this case there may be additional costs, for example, tutor services. A recently conducted study proves that half of parents spend more than 10 thousand rubles a month on extended education for their children. Besides, parents are not only thinking about higher education for their children but also saving money to buy an apartment or car for them in the future,” the expert said.

In order to generate the necessary capital by a certain date, it is better to start doing this in advance. “Firstly, there will be more time and opportunities to collect the required amount. Secondly, long-term savings or investment life insurance programs provide an opportunity to significantly increase capital using a high interest rate, which can be fixed for a long period of up to 10-15 years. This is much more beneficial than keeping cash at home, since in the latter case they are not protected from inflation, and the income received under life insurance programs for 5 years or more can be further enhanced thanks to the social tax deduction,” Orlova noted.

Thus, to build capital for your child’s future, choose one or several ways to save money.

“By using life insurance savings programs as a tool, parents will achieve their goal no matter what, since they will be insured against unforeseen situations related to life and health. To do this, you need to determine the period and desired amount of savings (which can be estimated based on the approximate cost of education, an apartment or car), set a comfortable size of premium, its frequency and make payments regularly. A significant advantage of such programs is that they include insurance, for example, even if the client becomes disabled, the planned capital will be generated, since the insurance company will make contributions for the client. And to always have money at hand, you can additionally use a bank savings account,” the specialist recommended.

Source: https://www.gazeta.ru/family/news/2024/05/13/22992841.shtml

Photos are from open sources.

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