DKI UMP Salary Want to save money for your child’s education, here’s how! My Money – 2 hours ago

Jakarta, CNBC Indonesia – Discussions regarding the DKI Jakarta Provincial Minimum Wage (UMP), which will increase to IDR 5.06 million in 2024, are still being widely discussed. Do you think there is an effective way for those who earn a UMP salary to save for their children’s education costs?

In fact, with good financial planning, you can do anything, including sending your children to the best schools or colleges.

So what is the right way to do it? Here’s the review.

Find out current college expenses

Without knowing the total expenses that must be paid for your child’s higher education, you will never know how much funds should be allocated to savings or investment instruments.

It’s a good idea to find out by asking directly to the university concerned or to relatives.

Be aware that education costs will experience increases or inflation. You also have to make calculations based on the inflation assumptions that you determine.

Set the investment period

If your child is 10 years old now, then it is likely that in seven or eight years you will have enough money to send him to college. Therefore, you have seven to eight years to save.

By knowing the time period for investing or saving, you can determine what investment instruments should be used.

The longer the investment period, the more flexible the choice of instruments. Meanwhile, the shorter the time period, the more advisable it is for you to choose instruments with low risk.

Working together to collect tuition fees

If you feel like your monthly salary is barely enough, remember that you are not alone in this. Invite your partner to help you collect your children’s education costs.

Be routine in saving and investing, set aside money into savings or special investment instruments at least once a month.

The more funds you set aside for your child’s education, the faster you will collect the funds you need.

[Gambas:Video CNBC]