The cost of child's education, which is not cheap, makes parents save money in advance. However, when monitored, education savings has not grown as expected. Apparently, the money often being used for shopping is what causes it.
Big discounts everywhere and education fund is gone in an instant, with the thought that there’s still time to start saving again. However, when the time comes for your child to go to school, there’s not enough money yet and you panic.
It was confirmed by a certified financial planner, Rista Zwestika Reni, when attending an event organized by Bank Jago Syariah. "For some parents, their mindset is that children's education funds can be thought of later when their children are approaching school age. Some other parents do not yet have an investment strategy and may not know the right investment product."
To avoid it, you can try these solutions.
Secure Education Fund in the Sharia Deposit
For parents who are easily tempted to use their children's education funds for online shopping, shopping at malls, and so on, you need extra protection. The extra protection is provided by the Sharia Deposit which can be found in Jago Syariah.
The Sharia Deposit allows you to lock up money so it is safe from improper use. For example, your child will enter elementary school 1 year from now. You can save money in the Sharia Deposit for 1 year.
Or, you just got married but already want to prepare for your child's education fund from now on, you can also put money into the Sharia Deposit for a maximum period. When the deposit is disbursed, you can create another Pocket to continue saving money in a new deposit. Insya Allah, the child's education money is safe and can be used when the time comes.
Apart from securing your child's education fund, saving money in the Sharia Deposit also gives you a competitive profit sharing ratio. Thus, when the deposit matures, you can get more education funds than what you saved. You can use the profit sharing to buy your child's school needs, such as uniforms, new shoes and bags, etc.
Invest in Bibit Mutual Funds to Save for Child's Education
Another alternative to secure children's education fund is to choose investment instruments such as mutual funds. Mutual fund investment is suitable for those of you who make saving for children's education a mid-term or long-term financial goal.
Jago Syariah with the power of the digital ecosystem can support your dreams and financial goals, whatever they may be. By having an account at Jago Syariah, you can more easily and practically invest in sharia mutual funds with Bibit.
Link your Jago Syariah account to your Bibit account so you can invest in sharia mutual funds with Bibit without paying top up fees. Apart from that, you can also take advantage of the Jago Autodebit feature, which can help you invest more consistently to save money for your child's education.
No less important, with Jago Syariah and Bibit you can monitor the investment portfolio of your sharia mutual funds directly from Jago Syariah. If you want to withdraw your investments, you can also make direct withdrawals to Jago Syariah. The returns will go into the Jago Syariah Pocket and you can use it for your child’s educational expenses.
Choosing Between Sharia Deposits and Sharia Mutual Funds
Sharia deposits and Sharia mutual funds both offer ways to save money according to Islamic principles, but they have different characteristics. Sharia deposits are generally more suitable for parents who prioritize safety and stability. The returns, known as a profit-sharing ratio (nisbah), are agreed upon beforehand, making it a low-risk option with a more certain outcome. This instrument is ideal for shorter terms, where educational funds need to be prepared within 1 to 5 years, such as for elementary or middle school enrollment fees.
On the other hand, Sharia mutual funds typically offer a higher potential return, although the risks are also more varied. A professional investment manager places the pooled funds into various Sharia-compliant investment instruments. This option is more flexible and can be started with a relatively small amount, making it a good fit for parents with a long-term investment horizon, like saving for a child's university education from a young age.
Whatever your choice, saving with either Sharia deposits or Sharia mutual funds is easy and compliant with Sharia principles at Jago Syariah.
It's time to ensure that your child's education fund is safe and used for its intended purpose. Saving and spending according to sharia principles to have a more blissful life is now easy with Jago Syariah.
