By Meshack Miyogo
Many parents, without much of a second thought, find themselves relying on their entire savings, holding harambees, borrowing from banks or saving societies to meet these educational needs.
As parents, we instinctively want the best for our children, and one of the most powerful ways to ensure their future success is by prioritising and saving for their education.
The first US Ambassador to France, Benjamin Franklin, once said: “If you fail to plan, you are planning to fail.” True to this adage, Kenyan parents have time and again shown the zeal to transform their own lives by ensuring their children get the best education available, albeit within their means.
According to a 2023 WorldRemit report, the average Kenyan parent spends about Sh68,701 annually on a school-going child, which indicates the heavy burden the majority of families are currently facing amidst rising costs of living and economic uncertainty.
With the ever-increasing costs of our children’s education, planning ahead is not just advisable, it is essential. Investing in a comprehensive education policy to safeguard your child’s future emerges as an effective tool towards achieving financial freedom.
Primarily, education policies facilitate long-term savings with accrued interest, allowing you to commence saving for your child’s education even before their birth and give them a head start in life. Moreover, if you start saving early, the monthly amount deducted is likely to be less over your savings period compared to starting the savings journey later in life.
Secondly, these policies come in various forms, providing flexibility to cater to your financial goals and preferences. Whether you opt for a savings plan or a prepaid tuition plan, or a combination of both, these policies can be tailored to align with your specific needs. This customisation ensures that you have control over your financial strategy, allowing you to adapt to changing circumstances.
Thirdly, saving for your child’s education through an education policy instills financial discipline from an early stage. It teaches the importance of regular savings, planning for the future, and making informed financial decisions. This invaluable lesson extends to your child, who learns the significance of financial responsibility and goal-oriented saving.
Furthermore, an education policy is a dual-purpose instrument incorporating savings and life protection components. It allows you to save while providing life coverage for you as the parent or guardian. In the unfortunate event of a death, permanent total disability, or critical illness, the education plan ensures continuity of your child’s learning by having the insurance company cover the remaining contributions.
An education policy therefore remains a strategic and prudent step towards ensuring that your child not only dreams big but also has the means to turn those dreams into reality.
By embracing the long-term vision of education policy, you not only mitigate financial stress but also empower your child to thrive in a rapidly changing world. As parents, let us embrace the transformative power of education policies and pave the way for a future filled with promise and prosperity.
The writer is the Managing Director at CIC Life Assurance.
