5 Ways to Pay for Your Child's University Tuition in Nigeria

With university tuition costs rising yearly, it is no wonder that more and more parents are looking for ways to pay for their child's education. In Nigeria, private university tuition can cost close to ?1,000,000 yearly. There are a few options available to parents regarding paying for university tuition. If you are a parent looking for ways to pay for your child's university tuition in Nigeria, we will walk you through some practical & feasible ways in this article.

A. Ways to Pay for Your Child's University Tuition

As a parent with children ready for the university, you can use any of the options below to pay for their university tuition.

1. Paying for University Tuition with a Loan: There are a few things to consider when taking a loan to pay for your child’s tuition in Nigeria, including the interest rate and the repayment terms. Research which lender/bank can give you the lowest interest and the best repayment terms. Importantly, avoid loan sharks that may lead to unhealthy financial anxiety.
2. Paying for University Tuition with Savings & Investment: Another option to pay for your child's university tuition in Nigeria is with your savings. Depending on the amount in your savings & investment, you may be able to cover all or most of the tuition costs. This can be a great option if you want to avoid loans. While this is a good way, be sure not to wipe your savings in paying for the university tuition, as you also need to plan for other financial commitments for the family.

 B. Ways to Save for Your Child's University Tuition

If you are a young parent, this is the time to start planning towards your child(ren)'s educational goals. You can save for their university tuition through any of the options below:

1. Paying for University Tuition with an Education Savings Plan: This is the best option to save towards the university tuition of your children. Unlike a bank’s savings account, the education plan is a targeted savings plan specifically built for the education of your children. You may choose to save for 5 or 10 years or more, depending on the age of your children and when you would need the money. These accounts are tax-advantaged, which means you can get a tax break on the money you contribute. The funds earn interest, and in case of unforeseen circumstances like temporary or permanent disability, your beneficiary receives the funds. This guarantees their educational aspiration & shows you made a good plan. If you want to know more, contact an AXA Mansard  so we can answer all your questions.
2. Open a savings account in your child's name: This is a great way to start saving for your child's financial needs. You can open a savings account with a bank for your young children, so the money gains interest when they are ready for university. However, these savings account is not a guaranteed way to plan for their future. For example, in case of emergencies, you may be forced to withdraw the money or when unforeseen circumstances such as death or disability occur, the funds may be diverted.
3. Invest in a mutual fund: Another great way to save for your child's future education is to invest in a mutual fund. You can also open money market fund account for your children to save towards the financial commitment of their education.

Conclusion

Since the cost of tuition can be so high, it is vital to start planning early on how you will pay for your child's university education. The best way to plan is through an education insurance fund, which gives you guarantee for your children irrespective of the circumstances. We hope our tips have helped you figure out the best option for your family.