“As teachers, you play such a critical role in shaping our children’s futures. You’re not just imparting knowledge, but you’re molding their values, their ambitions, and their potential. Your commitment ensures that these children will have the tools they need to succeed in life. But as you invest so much in their future, it’s equally important to think about your own children’s future, especially when it comes to education.
We all want the best for our children. Quality education is one of the greatest gifts we can give them, but it’s also one of the most significant financial commitments. That’s why personal financial planning, particularly for their education, is so important. By preparing today, we can ensure that our children have access to the opportunities they deserve, without the burden of financial stress later on.”
“One of the biggest challenges parents face today is the rising cost of higher education. Both locally and internationally, education costs have been increasing at a much faster rate than general inflation. In Kenya, university tuition fees, school levies, and other educational expenses have steadily risen over the years. If you look at international universities, the figures are even more staggering. For example, in the U.S. or the UK, the cost of tuition, housing, and other fees can amount to millions of shillings per year for a single child. Now, this increase isn’t just happening by chance—its driven by factors like increased demand for quality education, rising operational costs for institutions, and technological advancements. What does this mean for us as parents? Well, if we don’t plan and start saving early, the dream of giving our children a top-notch education may become increasingly difficult to afford in the future.
Let me share an example. Imagine that today; the annual cost of university tuition in Kenya is KES 200,000. With education inflation averaging around 6-7% per year, in 10 years, that same fee could grow to over KES 400,000 per year! Now imagine you have more than one child—without a structured plan, funding their education could place a massive financial strain on your family.
Internationally, this impact is even more pronounced. Tuition fees that are already high can increase to a point where many families either have to take loans or forego certain opportunities. But this is where early financial planning becomes your ally. If you start preparing now, through savings or investment options, you can comfortably meet these costs when the time comes.”
“One of the advantages of planning for your child’s education early is that the government offers tax relief on certain education savings plans and insurance policies. By taking advantage of these tax benefits, you not only secure your child’s future education but also reduce your overall tax burden.For example, if you invest in a registered education policy or long-term savings plan, you can claim tax relief on the premiums paid, up to a certain limit each year. This means that a portion of the money you would have paid as tax is instead going towards your child’s education savings. Essentially, you are not only saving for your child’s future but also keeping more money in your pocket in the present.
These savings can be substantial over time. Think of it this way: every shilling you save through tax relief is an extra shilling you can invest, helping your money grow faster and more effectively. In addition, the interest or returns you earn on these investments are often tax-free, which means you benefit from both the growth of your investment and reduced tax liabilities.
By taking advantage of these tax relief options, you can make your savings work harder for you while ensuring that your child’s educational future is secure.”
“Early financial planning can profoundly impact a childs educational opportunities. Let me share a personal story: my brother, who is now a doctor, was able to secure a scholarship for his medical studies.
This achievement was just due to his academic excellence; it was also the result of strategic financial planning by our family. By investing in his education early and exploring various financial aid options, we positioned him to take advantage of opportunities that might otherwise have been out of reach.
Similarly, many parents have successfully secured their children’s educational futures through early investments. For instance, consider the case of a family who started saving for their daughter to college education as soon as she was born. They utilized education savings accounts and took advantage of tax benefits associated with these plans. When their daughter was ready for college, they had accumulated enough to cover her tuition, reducing the need for student loans and allowing her to focus on her studies without financial stress.
These examples underscore the importance of proactive financial planning. By starting early, you can leverage the power of compound interest, maximize tax benefits, and provide your child with a solid foundation for their educational journey. Its not just about saving money; its about creating opportunities and ensuring that financial constraints do not hinder your child’s potential.”
This is how early financial planning can yield significant benefits, take proactive steps for your children & futures.
Delaying financial planning only makes it more challenging in the future.
“As we have discussed, securing your child’s future through education is one of the most important investments you can make. But here’s the thing—time is not on our side. The longer we wait, the more difficult it becomes to meet the rising costs of education. Every year that passes without a plan means missed opportunities to grow your savings and take advantage of tax benefits and compounding interest.
Delaying financial planning forces us to save larger amounts in a shorter period, which can put undue strain on our finances? On the other hand, starting early allows you to save smaller amounts over time, making it much more manageable.
The best time to act is now. It’s never too early to plan, but it can easily become too late. I’m here to help you take that first step. For those of you who would like personalized advice, I’d be happy to schedule a one-on-one sessions to explore detailed financial plans tailored to your needs and goals.
By taking action today, you can ensure that your child’s educational journey is secure and free of financial obstacles. Let’s work together to make that happen.”
CALL: 0722675977