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Top 3 ways you can save and invest for your kids' education

From saving to borrowing to invest, we discuss how to plan for the rising cost of education.

With private school fees reaching tens of thousands in the large capital cities, many families are keen to look at ways to provide for their kids’ education. Here are some steps that may help get you started.

1. Begin early and make a plan

Find out the school fees and expenses you’re likely to incur, the number of years you’re likely to incur them (say, years 7 to 12) and consider your time frame – the difference between your child’s current age and the age at which they start at your chosen school. This may be able to help you work out how much you need to save, which you can then break down into annual, monthly or weekly increments.

2. Start a regualr savings plan

Consider setting up a direct debit into a savings account you don’t touch, such as an online savings account or a reward saver account paying a higher rate of interest. If your child was in childcare and is now attending a (public) primary school, you could start by putting away the amount you’re now saving in childcare fees.

3. Set up an investment plan

If you have a time frame of five years or more and are comfortable taking a higher level of risk with your savings, you could consider putting regular savings into a managed fund, or buying diversified investments such as an exchange-traded fund (ETF). These investments are more volatile than cash but may generate higher returns over the long term, helping you reach your savings goal.

A financial adviser can help you assess the options available to you and find the solutions that will meet your needs – no matter what stage of life you’re at.

Important information and disclaimer

Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance or other decision. Please seek personal advice prior to acting on this information.

While it is believed the information in this publication is accurate and reliable, the accuracy of that information is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of the NAB Group, nor their employees or directors gives any warranty of accuracy, or accepts any responsibility for errors or omissions in this document.

Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.


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