Smart Tips for Financial Planning That Can Save Hundreds of Millions in Child Education Costs

Smart Tips for Financial Planning That Can Save Hundreds of Millions in Child Education Costs

Kevin explained that parents are responsible for paying their children’s school fees of Rp. 500 million. This money will be needed in the next 15 years.

“If we plan 5 years in advance and save daily, we have to save 8.35 million x 60 months to get Rp 500 million. However, if we invest in deposits, bonds, and money market funds with return investment of 5% per year, we only need to invest Rp7.6 million multiplied by 60 months to Rp456 million. The remaining Rp44 million is to meet the investment return,” said Kevin.

According to Kevin, we can save even if we start investing early. If we started investing 15 years ago, then the monthly amount needed for children’s education is only about 2 million multiplied by 180 months to produce IDR 360 million. The remaining Rp 140 million was obtained from the investment result. accumulation.

“We now know that the earlier you plan your finances, the easier it will be to invest,” Kevin said.

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