Why saving early for your child’s education is essential


KEY POINTS

The dream of every parent is to be able to provide what their child needs throughout their life. This includes providing quality education.

The dream of every parent is to be able to provide what their child needs throughout their life. This includes providing quality education.

While the cost of education varies from country to country, there is no doubt that the Government of Kenya has made considerable efforts to make education at the primary and secondary levels more accessible.

The policy of free primary education introduced in 2003 should lead to greater transitions of pupils entering secondary schools over the years.

The current government’s 100% transition policy to secondary school means that the more than one million students who have completed their Kenya Primary Education Certificate for the year 2020 have the opportunity to continue to benefit from their educational journey.

The government tuition subsidy that parents enjoy today has made secondary education more affordable. The point is, however, that while the government is doing everything to make education affordable, parents still have to part with a little money to educate their children through high school.

The annual fee for a national public high school is approximately 53,000 shillings. Education in higher education institutions demands much more from parents, especially since there are many factors to consider.

On average, a parent may have to part with two hundred thousand shillings per year to cover a full year’s tuition and related costs such as accommodation. The amount will vary depending on the educational program and the institution, with the majority of private universities known to cost more than public institutions.

Simply put, while getting a good education is much easier today, the cost cannot be ignored. A carefully designed education policy presents a solution to any parent or guardian with big dreams for their children.

Contrary to popular belief, it’s easy to have an education policy that’s right for you. A good insurer will take the time to understand the parent’s expectations and come up with a plan that will work best for the parent, and ultimately make that dream come true.

In particular, having an education policy for your child while he is still young is the best approach. The reason is that it will mean taking the opportunity to save more for a longer period.

This not only allows you to manage your day-to-day finances, but also paints a picture of what you can help your children accomplish throughout their educational journey. As the savings accumulate over the years, the financial burden of educating your child from grade to grade is no longer there.

A well-designed policy will meet your needs, ensuring that funds are available at the right time during your child’s education. In the unfortunate event of the death of a parent, the insurer will then assume the burden and cover the child’s education. The trip then becomes a shared responsibility between the insurer and the insured.

The current situation in the country resulting from the effects of a global pandemic continues to show us how important it is to plan for emergencies and for the future. While access to quality basic education remains the responsibility of government, the dream of seeing your child succeed will require much more.

Essentially, it means taking a fresh look at personal financial management to present your child’s education planning as a new item rather than keeping it for later. The price for purchasing an education policy for your child early in life is financial freedom. The joy he brings afterwards once the dream is fulfilled is immeasurable.

The author is the Acting Managing Director, CIC Life Assurance Limited

About the Soko Directory Team

Soko Directory is a digital Financial and Markets portal that tracks brands, NSE-listed companies, SMEs, and market ecosystem pioneers. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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