104 Janaury 2014 www.bahrainthismonth.com Save Early for College CITIBANK The responsibility of raising children is possibly the biggest task anyone can embark on. A crucial component of this challenge is financial, as the costs of housing, healthcare, education and food spiral upwards with each passing year. However, the one factor that contributes the most to the cost of raising children and remains uppermost in every parent’s mind is college education. Many questions can cross a parent’s mind at the planning stage. Some of these include: When should I start this saving? How much will a child’s education cost? Would I be able to afford to send our children to one of the top schools or colleges? How much should I save? Each one of these is a valid question from a worried parent, believes Navneet Kampani, Citi Bahrain head of consumer banking. Budgeting for your children’s education beforehand is likely to give them the best start in life, a gift they will always cherish. “Educational costs are not fixed. What you as a parent paid for your own education will certainly not be the same as what your children will be paying by the time they start college. Hence, it is essential to plan ahead,” says Navneet. A disciplined approach is extremely essential to this planning phase. Secondly, and equally important, it is a must to start any savings plan as early as possible. This gives the fund more time to grow or compound, thereby increasing the probability of your children getting the education they deserve. Essentially, the idea is to build your savings over time by investing a fixed amount on a regular basis. The benefits entail currency cost averaging, which reduces the overall volatility of your investment portfolio. Citibank relationship professionals have the expertise to guide you through this task and create a secure education plan that can safeguard your child’s future while providing you peace of mind. To give yourself a head start, think over the points below to discuss when you sit down with your Citibank relationship professional. For more details and a personalised education plan, contact Citibank’s portfolio counsellor. E Call 17 562-066. Critical Questions Consider these questions when thinking about the cost of education: l What could be the potential cost of your child’s education? Have a list of five to seven schools/colleges and ask them for a copy of their fees for the past five years. l What will be an estimate cost for extras? Calculate the cost of housing, books, food, travelling and others. l Have you been keeping a budget? You need to list all incoming money (salary, rental income, property and inheritance and outgoing costs (mortgage payments, bills and pension payments among others). reportinsurance&savings Are you worried about funding the higher education of your children? Remember, it always pays to plan ahead.
RkJQdWJsaXNoZXIy Mjk0MTkxMQ==