With the 2022 academic calendar underway and as you look forward to a promising year, the golden question is, do you have a financial plan for your children?
One of the most challenging tasks parents or guardians have had to face is ensuring that their children are well equipped for their studies. With the provision of a new curriculum and calendar dates from the ministry of education, time is undoubtedly constrained. The reality is that the absence of a sound financial plan jeopardizes a parent’s commitment to providing a promising future for their children.
We exist in a period where majority of the citizens are experiencing tough economic times. The cost of basic commodities seems to have risen, and it is proving difficult to predict what to expect in the near future. As a parent or guardian, uncertainty is not something you would want to determine your child’s future education. You need a stable, confident, and promising financial plan to guide your son’s or daughter’s education.
How do you achieve this? A review of CIC’s Academia Plan shows that this can be done in a few distinctive ways:
Having a financial plan:
As you focus on your child’s academic life, a financial plan serves as a guide. It helps you to take control of your income and outline the school expenses. Most importantly, it serves as a mirror that will help you determine what to spend and how to spend it, ultimately aiding you to secure your child’s education. A good financial plan gives you the ability to prepare for unforeseen events that might affect your child’s education journey.
Savings towards your child’s education:
You can avoid the stress of borrowing and incurring debts to pay for your child’s education by starting a savings plan early, even before they start school. Remember that while education expenses continue to rise, learning remains the best option for any child seeking a bright future. Quality education provides students with the necessary skills and prepares them to confront life’s obstacles. As a result, it proves more critical to begin planning and saving as soon as possible. You do not want to find yourself in a scenario where your child qualifies to further their learning but having no financial means to pay for it.
With the periodical payments offered through an education policy, your children will be able to realize their aspirations and achieve their career goals. As you journey through life, the policy will be able to cushion you in case of unforeseen events affecting your financial capacity to settle school fees, and fund your child’s education as you had desired or planned. This will mean continuity in learning in the unfortunate case of the death or permanent disability of a parent.
The CIC Academia policy attempts to provide flexible saving periods as a benefit. The total number of years one has to save under the education plan, referred to as a premium term, is 5 to 14 years. It implies that you can save smaller amounts of money over a long time. If you are a taxpayer, you also get to enjoy a tax relief at 15% of the premium contributed up to a maximum of KShs 60,000 per year.
At CIC, you also enjoy access to a Financial Advisor as a benefit. We have a team of advisors with a wealth of knowledge and expertise on financial planning using life insurance avenues. They are able to educate you on this financial solution. CIC Academia also has the provision of a loan as a benefit after completing premium payments for three years.
To sum up, the factors to consider when planning saving for your child’s education include your individual and family obligation, as well as lifestyle demands. Even then, the best approach is to ensure that you do everything possible to help your children succeed by opting to pay premiums early. The key is to be prepared ahead of time. Do not let the lack of access to quality education stand in the way of your goals.