How to Save for Your Child’s Higher Education | Credits

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Knowing how to save can not always be as easy as people make it seem. Through each person’s lifestyle, responsibilities and situation in life (emotional and professional), these factors condition life (and academic success), whether they want to or not. The team at Good finance .com has put together a set of ideas on how to prepare yourself from an early age for this important moment in your children’s lives. Well, see below!

Whether you are already a parent, or just contemplating the chance to stabilize your life and settle with a reasonable desire to start a family, you must ensure that you have the conditions for this step and think long term (the earliest times, nursery, primary , secondary and higher education). Most parents always idealize the best for their children, and that sometimes means joining a university.

Saving is a way of life

Saving is a way of life

If, from an early age, you have adopted savings as something innate in yourself and a constant in your life and those around you, you will come to a certain point that there will be no opportunity cost (economic term, which implies the sacrifice of a the other), that is, sometimes it is necessary to make choices and opt for something that is more essential at the moment, and people will be able to live with what they have.

Speaking concretely about school material, you can choose to start researching ways to save money early on. Recently there is a platform where you can sell and buy the already used books at reduced prices! The platform we are talking about is Book in a Loop. When selling the material, it has to be in good condition and it is possible to recover up to 20% of the retail price (PVP) and when buying it will have a saving of up to 60% of (PVP). Sounds good, right?

Sales of “garage”: sell what you no longer need!

Sales of "garage": sell what you no longer need!

Although this is an American custom, it is not uncommon to organize sales (of more or less symbolic value) to earn some extra money and get rid of some products that you no longer use and do not need.

From the vinyl collection of the seventies to the endless collection of DVD’s that you have inside the closet or even some accessories and clothing that has lost interest or that of not suit you! In addition to selling items that you no longer use, you can also make cakes and juices and then sell them to the slice and cup respectively. Not only will you make money, you will, in a way, get to know new people and find new friends.

Freelance: a world to discover!

Freelance: a world to discover!

Do you consider having multiple “still raw” skills and would you like to put them into practice so you can earn some change? The possibility of having your own business at a low cost and time is captivating for many people, because you can put a hobby in practice, like having the possibility to go with it.

Grants – what do I want?

Grants - what do I want?

Through Christmas and vacation allowances you can save money for your child’s promising future. On the assumption that he would be able to save 15% of the subsidies he receives, after a few years, if he chooses to start saving at the beginning of adolescence for this purpose, he will have already accumulated more than enough value for the new stage – the university education of your child.

Let’s assume that a member of the couple has a monthly income of 700 euros net and they both start saving when their child is 14 years old. There would be 1400 euros per year per member, given that they are two subsidies, the result would be:

1400 x 0.15 = 210 euros / person
Total of the couple (4 years) = (210 x2) x 4 = 1680 euros

The total value of EUR 1680 relates to savings for four years until your child reaches the age of majority and enters higher education. If your child enters public education, for example through the savings mentioned above you will be able to pay almost the “ready” the first two years of tuition fees, since the average value of them in mainland Portugal is around 940 euros per year.

If that does not seem enough, you can always choose to use a personal training credit to help fund your child’s education. Check here the various options available in the Portuguese market.

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