How to invest for childrens education?

vasilis1740 · Apprentice Joined: 14 Apr 2008 Posts: 3

I have a son who is seven years old. My husband and I are planning another child. We talk a lot about our plans for the future. Both of us would like to start saving and investing for our children’s education. Can you give us any recommendations? Thank you.

anders · Apprentice Joined: 12 Aug 2006 Posts: 24

One of the biggest expenses you'll face is paying for your children's college. College is expensive enough if you have one child, but having more than one can be extraordinarily expensive. One way to help pay for your children's college is to invest smartly now so that you'll have the finances you need when they graduate high school. Once you have an idea of how much your children's education will cost, you can then choose investments that offer the best potential to reach your goals. Remember, provided you are able to plan at least five years ahead, you're probably better off with growth investments such as shares and property. History has shown that over the longer term, growth investments generally increase in value at a higher rate than inflation and income generating investments, such as term deposits. While growth investments tend to involve a higher level of risk, you can ride out the ups and downs over the longer term.