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AUSTRALIAN parents are increasingly turning to investment vehicles to secure their children's education. The drift of students from public to private schools, combined with increased school fees and soaring HECS debts, has created an environment in which many parents must now plan for years in advance if they are going to have any hope of giving their children a private school or university education. The non-profit Australian Scholarships Group, which assists parents throughout Australia to save for their children's education, says parents should start saving early and take advantage of the tax benefits in educational scholarship funds. General manager Warwick Jones believes it is now practically a given that most parents have to start saving from the start of their marriage for their children's education. "The single most important factor in all of this is to begin saving at the earliest possible opportunity," he said. "It is also essential that parents are able to make regular contributions to their savings and, above all else, that they do not dip into these savings for any reason other than for their children's education." But even then, parents must be careful that their savings are placed in the best investment vehicle available to ensure their return is maximised to the fullest and grows at the quickest rate possible. Even when people start budgeting early for their children's schooling, a lot of that good work can be undone or reduced if they do not properly investigate the best types of investments. This is not limited just to what types of interest rates apply to their particular savings account or what bank fees will be charged, but also whether the investment and, more particularly, the accrued interest enjoys the most tax-effective treatment. While people still go to banks and open accounts to save for their children's education, many do not realise that if they instead invested in a tax-registered Educational Scholarship Fund they could receive substantial tax benefits and savings. Simply put, these types of funds operate as a parent-funded scholarship program for their children. As such, they seek to fulfil the requirements of a scholarship plan as defined under the Income Tax Assessment Act and thereby attract a tax concession, meaning the children's benefits via the parents' investment in the fund are maximised. The Australian Scholarships Group and two other Friendly Societies -- Lifeplan and Australian Unity -- are the main operators of these funds in Australia. The other important factor often overlooked is the importance of maintaining a proper balance between education savings and other financial and personal responsibilities. M R JONES said that while private education for their children was and would remain the No.1 goal for many Australians, it could place great day-to-day pressure on family members and, in extreme cases, be counterproductive to the family unit. "I have seen an increasing number of cases where both parents take and maintain two jobs each so that they can earn the required income to satisfy their savings budgets for their children's schooling," he said. Mr Jones said this could reduce the amount of quality time parents spent with their child. It is recommended parents obtain their own financial advice. [ 本帖最后由 AgeanSea 于 2007-5-16 13:39 编辑 ] |
