How do you pay your schoolfees?

School  fees social media, how now? Hope you’ve partially recovered from Savage September. Don’t forget Voracious January (nothing like enjoying the festive season!). But what happens when the new term rolls in? A lot of parents tend to struggle with settling their children’s schoolfees, a good number of them owing half or quarter of the fees by half-term. So this post should hopefully give us tips on effective financial planning for school fees.

Why plan?

3 times a year, parents become broke because they pay school fees and there is no money left. Which is weird. How can you not plan for something you KNOW happens 3 times a year, talking about how you’re extremely broke, with endless complaints all over social media, time without fail? In a country where so many expenses are unpredictable, your children’s school fees IS predictable. You know how much you’re paying, when you’re paying it and whether it will increase. Why not plan?

Make a wise choice

What makes a good school? Is it the most expensive in your area? The one that all the Joneses go to? Mrs Nimi Akinkugbe of Money Matters With Nimi says “the best school for your kids is the one you can afford”. A good school is a safe place with a good foundation where your child can learn. Nothing more, not fancy finger scanners to access the classrooms or French Language Excursions for 4-year-olds.

Do the Math

Add up how much school fees run per annum. That’s the target number you should save for. Then divide it by 12. So you now have the amount of money you need to save every month, in order to be ready every year for school fees. This works if you have a steady monthly salary, but even if you have a flexible income, do the same. I have a cousin who by September of every year, is done saving up for next year’s annual school fees. Like, there are no surprises.

Piggybank it!

Don’t leave the amount you save in an account that you can easily access. You’ll find yourself dipping into it. Putting it in a Savings account also doesn’t make much sense, as the interest rate is low. And you definitely want your money working for you and earning more money, so why not target one of the many safe investment options with reliable Financial institutions? I use an an account that offers me 13.5% interest per annum and because I add to the money frequently, compounding interest works in my favour. The most important criteria for selecting that account is:

  • it must be a RELIABLE and safe and backed-by-CBN instrument from a reputable Financial instrument. Any “wonderful investment opportunities” that is run by people whom don’t have a physical office, you don’t know them, the returns are incredible, (like 200% interest! haba) and are not registered with CAC, is a no-no. Please don’t gamble with your children’s school fees.
  • it must be easy to liquidate. 5 days max for you to withdraw how much you need per term and pay off. No long story. Super important.

There are a lot of safe, sensible options out there, so please do your research.

Long-term planning

ASUU is currently on strike. As long as I can recall in my life, ASUU has always gone on strike, causing delays to the educational welfare of your children. They are as constant as the Sun rising in the East, when it comes to going on strike. But not private universities (the cream of the crop are slowly catching up to their peers abroad). So that means my children are NOT attending public universities. Which means that I need to start planning for their university fees right now. Not in 10 years’ time, right now. My Aunt and her husband bought a small studio flat for their daughter when she was 10, somewhere in the UK. The rent from that flat has paid off her school fees and is now coming to her as passive income. Fam, she’s earning N350,000 per month. For doing nothing. And best of all, she’s financially secure and her student loans have all been paid off. At age 24.

Walk into a reputable institution and ask about long-term financial planning. If you had come for this event you would have met several. But still contact reliable ones. That’s what parents do abroad, that’s what my parents did for me and it is a relief to not start life at 21 owing huge sums of money in student loans, or know you can afford to select any school of your choice. Don’t wait till 16 years of age to start planning for university.

 

Those are my tips, do you have any to share? Would love to hear from you in the comments. Take care and see you soon!

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