The flyer covers the following information you can share with your clients:

Tax effective savings options for child’s education

The rising costs of education means that funding a child’s education is becoming the second largest expense outside of paying the mortgage on the family home.  In 2012 it was estimated to cost a middle income family $812 000 to raise 2 children from birth until they leave home (AMPNATSEM report on the cost of kids). This was up from $537 000 only 5 years earlier.

Funding school fees

Estimate how much you’ll need based on the age of your kids are, understanding if you want to send them to private or government schools.  Also the amount will differ if you’re saving for their primary, secondary or tertiary education – or all three. Primary schooling will cost less than secondary and tertiary schooling.

Start early

The best time to start saving is when your child is born or even earlier. Set a budget and determine how much you are able to put aside each week. You might also want to consider Increasing  the amount each year to account for inflation.

There are a few ways you can achieve your savings goal. It could be as simple as setting up a direct debit from your account and deducting a weekly amount into education savings. You could also make lump-sum contributions, such as your annual tax refund.

Many parents and grandparents face the challenge to find an investment that is tax effective whilst also meeting their savings needs.  An investment bond is an effective product worth considering.

Visit www.centuria.com.au to explore an online calculator to assist parents and grandparents understand the outcomes they can achieve from the savings plans they put in place for their children.

Download the flyer here.

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