The average Australian graduates from university with a loan of $21,557, which can be rather harrowing if they have plans of buying a car or home. Private school, too, will set families back around $368,000 per child (from Prep to Year 12). Parents wishing to save for private schooling and reduce the amounts their children end up owing at university should adopt a sound financial strategy from the time children are born. Doing so in just three key areas will give kids a good start in life and teach them about the importance of looking after their health and finances.
Saving For Your Child’s Education
There are many financial steps you can take to save enough money for education. If you are willing to invest a sum for 10 years, an investment bond may be of interest. This is because any earnings you make on the investment do not have to be recorded on your tax return. Another popular method used by Australians is that of opening an account in their child’s name. This option is limited, however, since you need to ensure the interest or income earned does not go over $417. Additional ways to increase your income include working part-time and working for home if you aren’t already doing so. From freelance writing to virtual assistance, there are jobs that can be adapted to your time availability while bringing in an extra financial boost.
Investing In Health Insurance
Recent changes to private health insurance have arisen, owing to reforms initiated by the Australian government in April this year. The main change is the introduction of Gold, Silver, Bronze and Basic product tiers, which make it easier to compare and make a choice. Medicare in Australia currently covers immunisations, eye tests and dental care, but it does not cover all possible future medical procedures. If the latter arise, they can put a big dent in your savings funds. Since children can be added to your policy at no additional cost, obtaining private health insurance for your family is a good way to guard your family against potentially large financial losses.
Teaching Kids To Battle Stress
Recent surveys have shown that over a quarter of Australians are stressed or anguished. Because stress is linked to serious diseases and conditions such as anxiety, depression, obesity, some cancers, and diabetes, teaching your children to handle stress is key. From the time children are mature enough to follow your lead, you can try teaching them powerful yet simple techniques, such as controlled breathing, meditation and yoga, all of which have been found in numerous studies to be a powerful antidote against stress.
Investing in your child’s future is a matter of time and money. Saving enough for the education you wish them to have can be a matter of making wise investments or earning extra income. Of course, it isn’t all about money. Health – both physical and mental – should also be a big priority, since kids who make wise lifestyle choices can stave off disease and enjoy a long and happy life.
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