Education is one of the important things that must be carefully prepared. With good education, it is hoped that it will help to achieve goals and improve the future. Thus it is necessary to prepare carefully in getting a good education, in terms of mental, physical, and funds.
To achieve fund readiness, it is necessary to prepare in advance. However, even though it has been prepared in advance, there are still often mistakes that in the end make the need for fund preparation unmet. Moreover, it is approaching the season of grade increase as it is today. There’s nothing wrong with learning from mistakes, this can be a lesson for you who want to prepare education for your children or for you who want to prepare for your own education costs in the future.

1. Miscalculating the inflation of education funds
Education funds are a number of funds or costs that will be used in the future; therefore, it is important to take the value of inflation growth into account. Likewise, considering the increase of education cost every year, it is very important for you to prepare for this from the beginning. The inflation of education costs may be higher when compared to the inflation of basic necessities. Some private schools even raise the cost of base money by up to 20% per year. So, it is important to really know what exactly is the inflation of education each school regulates. To be sure, you can ask directly to the administration of your dream school, even though you will only go to the school--for example--in the next 5 years. If it turns out that the school policies are not in line with your financial capabilities, then it’s the cue to change your education funding plans. Also, if you want to continue your education abroad, then the calculation cost will be a bit more complicated. In addition to taking notes of the inflation of education costs, it is also necessary to consider the rupiah exchange rate against the currency of the targeted country. And do not forget to take into account the cost of living in that particular country.

2. Not being admitted to the dream school
Currently, many parents choose their favorite public school as their dream school for their children, considering that the funds that need to be prepared will be smaller than private schools. However, in the case that the plan goes awry, there must be a larger additional fund if you want to enter a private school that is considered equal in quality. Therefore, the preparation of education funds for children should be made with the calculation of the highest probability between favorite schools. Thus that if the first choice fails, we have sufficient funds to go to another school.

3. Choosing the wrong investment instrument
Various investment instruments can be used as an alternative to children's education funds in the future. Investment instruments have different returns according to the timeframe. The need for short-term investment is certainly different from the long-term. Considerations between the potential to get maximum results, potential investment risks and the amount of investment value in accordance with ability should be taken into account. The mistake that often occurs is that investment instruments that should be intended for short-term investments are actually intended for long-term needs so that the results are not optimal, and vice versa.

4. Only use 1 type of investment instrument
In making education fund plan, it is important to separate the plan for each child. Aside that the needs of each child are different, the investment period is also different. With the separation of the preparation of education funds for each child, it will also be easier for parents to calculate how much investment needs per month. The separation of the preparation of each child's education funds will make it easier for you to choose the appropriate investment instrument and evaluate its development properly. Currently, there are also several financial products designed to prepare children's education funds, for example, term education savings, deposits, education insurance, mutual funds or others.

5. Not preparing early
The most frequent mistake is to feel that you always have time to prepare for education funds, until it’s too late. Whereas with an early investment, the funds that can be set aside can be very affordable. However, unfortunately, there are still many parents who suddenly collect tens of millions of money, or even having debts for their children so that they can continue their education to the next level.

6. Choosing the wrong time
Sometimes there are parents who incorrectly determine the estimate between the time and cost required. When determining the approximate time, it is necessary to adjust to the current age of the child. If the child is still an infant or 0 years old, then there are at least five stages of time that must be considered.

Consider the entrance fee for playgroups and kindergartens (three years), these costs can use medium-term investments.

To enter elementary school, you can also make investments in the medium term. As for the needs of entrance fees or during junior high school, high school, or college, you can choose to invest for the long term. You need to set this time period so that it is not troublesome in the future and choose the right investment instrument according to financial goals.

Source : https://sikapiuangmu.ojk.go.id/FrontEnd/CMS/Article/10509