Every parent would wish that their children gets a quality education. Quality Education will support the development of the child to be smart, intelligent and of good character. However, the higher the quality of an educational institution, the higher the cost. This is the basis that many parents prepare education funds for their children.
Reasons Why Parents Are Choosing Educational Savings
Each parent has their own way to prepare educational funds. Many use various investment instruments such as deposits, gold, property, mutual funds and education insurance. However, from the various types of investments, there are still many parents who prefer educational savings as a preparation for their children. Here are reasons why parents prefer educational savings to other investments.
- Simple and easy process
- The first reason many parents choose education savings is because of its convenience. To make education savings, you only need to go to the bank and state your intentions and goals to make an education savings account. Then fill out the form and education savings for your child have already been completed. Besides that, you don't have to bother coming to the bank to save, because it will be debited directly from your bank account.
- Equipped with insurance
- Completing education savings with insurance will provide protection in the form of continuous payment of savings deposits when the customer has passed away. The heirs will still get the savings right in accordance with the target and the saving period because it is covered by the insurance.
- Minimal risk
- By making an education savings account, you save your child's education funds at the bank. Education savings are of very minimal risk. If placing education funds on stock investments, the funds will be at high risk if not managed properly. It is this safety factor and minimal risk that makes many parents feel that education savings is the best educational instrument despite the lack of interest rates that are always directly proportional to inflation.
Saving education funds for children in the form of education savings is the safest and least risky way, unless you are experienced in other types of investments, then there is no harm in placing your child's education funds outside of education savings.