Without much thought, many parents rely on their savings, holding harambees, borrowing from banks, or saving societies to meet 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.
Benjamin Franklin, the first US Ambassador to France, once said: “If you fail to plan, you are planning to fail.” True to this adage, Kenyan parents have repeatedly shown the zeal to transform their 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 most families face amidst rising living costs and economic uncertainty.
With the ever-increasing costs of our children’s education, planning is not just advisable; it is essential. Investing in a comprehensive education policy to safeguard your child’s future is an effective tool for achieving financial freedom.
Primarily, education policies facilitate long-term savings with accrued interest, allowing you to save for your child’s education even before their birth and giving them a head start in life. Moreover, if you start saving early, the monthly amount deducted will likely be less over your savings period than if you start 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, a prepaid tuition plan, or a combination of both, these policies can be tailored to align with your needs. This customisation ensures 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 age. 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 as a parent or guardian. In the unfortunate event of a death, permanent total disability, or critical illness, the education plan ensures the 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 mitigate financial stress and 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.
Meshack Miyogo is the managing director at CIC Life Assurance.