2023-05-28 21:53:35
More than 180,000 third-year high school students from the 2022-2023 school period, Sierra – Amazonía regime, will graduate next July. A new stage begins: the university. Photo: Pixabay
In a few weeks the 2022 -2023 school year will end in eThe Sierra and Amazon regime. It is estimated that more than 180,000 third-year high school students will graduate and go in search of a place in universities and colleges.
The cost of third level careers are a challenge for parents.
According to the Secretary of Higher Education, Science, Technology and Innovation (Senescyt), universities, polytechnic schools and public higher institutes have 120,000 places for third level.
In other words, there is a shortage of places in the public sector for all recent graduates to continue their higher education.
The parents of many of the young people who cannot access public institutions think about education private as an option.
That is the case of Veronica. Her daughter, Anahí, is studying Third year of high schoolin a private school south of Quito.
The mother points out that if her daughter does not get a place in a public university, she must opt for a private one. “We have toured some universities, they are quite expensive. Although I have some savings, I don’t know if it will reach me, ”she said.
How to face these high prices without falling into over-indebtedness?
When we think about the academic training of children, long-term savings is the best financing tool.
Especially for private higher education, which in Ecuador ranges from USD 2,000 to USD 8,000 per semester, he said. Stephen Correacommercial assistant manager of Andalusia.
“Planning is the key to meeting any financial goal. Even more so in the educational field, since it is the only way to assume the strong resources that it demands without affecting the liquidity of the future”, said Correa.
According to the expert, to achieve a sustainable and efficient savings plan over time, it is not necessary to allocate large amounts of money; You can start with USD 20 per month and increase the value month by month.
In addition, extra income payments can be made to further strengthen the fund. Another recommendation is to find a financial instrument that generates profitability on the saved fund.
Five recommendations for financing children’s education
1. Start your future savings plan as soon as you can. Do not wait for your children to be older, the younger, the better, since it means more accumulated resources and generating revenue; now is the perfect time to save to finance your education.
2. Analyze your financial situation. It is important to assess how much money you have to finance your children’s education, this is essential to be able to make decisions. A basic exercise to determine the value is to establish a monthly budget, where income and fixed expenses are identified, in this last item the education fund must be included.
3. Cut expenses. After you are clear about your fixed expenses, define which ones can be reduced to allocate more resources to the future savings plan, this is a sacrifice that will get you out of trouble in the coming years.
4. Avoid borrowing on unnecessary expenses. From now on, smart shopping will be your best ally to avoid fruitless spending. In the case of debts, it is best to limit yourself to paying the debts in the longest possible time, remember that the deferred ones make you end up paying in most cases, only interest.
5. Do your research and choose the savings plan that fits your needs. Savings and credit cooperatives can be a great alternative because they have lower interest rates than other banking entities. In addition, there are specialized educational savings plans that offer parents the possibility of paying for their children’s university studies. The minimum savings period is 24 months.
What plans are on the market?
Savings or investment account. The first step in establishing financial security is to create a savings account. This tool does not require a specific amount, nor is it tied to a certain time, the only requirement is discipline. You can also search for mutual or shared funds.
Long-term programmed savings account. This type of account allows you to accumulate a specific item monthly, during a determined time. “In addition, this system allows additional contributions, such as a payment to a credit card,” says the expert.
Specialized savings fund. This is an alternative that works to manage money and generate a return for the values contributed, something similar to a fixed-term deposit.
Benefits of planning your children’s education
Guarantees the education of children. By having long-term financial planning, economic control is ensured during this stage, since there will be no economic worries and in the event of any eventuality, the children will continue with their studies.
Cost additional items. Normally, educational institutions tend to raise their tuition costs, but having planned education in advance, this will not significantly affect the home economy.
Have financial freedom. By having substantial savings, parents will avoid significant debts, giving them financial freedom.
Likewise, “it is recommended that parents start saving from the age of 5 of their children, so that when they go to university they have the necessary savings funds to pay for their studies,” added Correa.
Even though the boys are about to graduate, there is always time to plan and start a savings program for their education, he concluded.
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