Do you want to save for your children’s education? Consider these options

Saving will always be a very wise decision and if it is for the education of the children, much better. If we talk about higher education, it can mean constant concern due to the costs involved, especially in a situation of economic and health crisis like the current one.

However, there are some ways to cushion the cost of this investment if we start saving early, as explained by Master Julio Capristán, a finance specialist at Norbert Wiener University.

“We know that the costs of higher education locally and internationally are quite significant. It is for this reason that Taking action in advance will allow families to plan and meet expenses. Due to the pandemic, for example, it is known that 79 thousand students from the AB sector of Lima abandoned their studies due to lack of funds”, Says the finance specialist.

“In our country, we do not have a solid savings culture, it is for this reason that some financial products may be the best option To help us save for the future and if this is not the case, we must take into account certain points to find the best savings option. If we make good decisions, in a period of 15 years, with a fee of 50 dollars, we could save more than 11 thousand dollars for the education of our children“, Add.

In order to know some specific saving guidelines for our children’s university funds, the specialist provides us with the following information.

1. Get college insurance. A university studies insurance is a financial product created by a financial institution, or insurance company, which by saving a certain amount monthly allows you to accumulate money so that, when the time comes, it is possible to pay for the full or partial expenses of higher education. a child or beneficiary. It is necessary to ensure that the financial product has additional services such as insurance for the death of the holder.
2. Save only in institutions that have authorization from the SBS. Because they are the ones that are really supervised, so your savings will be insured by the Deposit Fund.
3. Find out about the interest rate paid by the institution. To make an intelligent decision, you should not only take into account the TEA (Annual Effective Rate), the most important thing is to know the TREA (Annual Effective Return Rate), only the latter informs you about the true profitability obtained by your savings.
4. Bear in mind that so that your savings do not lose “purchasing power” it is necessary that the profitability is greater than the inflation rate.
5. Save in dollars. As these savings are long-term, it is recommended that they be in dollars, to avoid the devaluation of the local currency.
6. Know in which financial institution to save, you can enter the SBS website (www.sbs.gob.pe) and identify which pays more interest on your deposits.

The specialist points out that, if you do not want to take out university studies insurance, it is possible to save taking into account the recommendations given, but that discipline and perseverance is important.

COVID-19: vaccination of people aged 34 and 35 in Lima and Callao