By Anthony Ngatia
In these tough economic times, there is a deluge of personal finance information out there. And with this overexposure to information to information bring with it a mortal danger of getting confused as to what to apply and what to ignore.
The good news is that not every piece of information might be relevant. But there is one thing that is crucial. And this is the saying: “Do not bite off more than you can chew”.
This means that you should never try to do something that is too difficult for you. In the language of money, the saying means ‘Do not spend more than you can afford’.
We all need to have a plan for our children’s education, health, owning a home, creating an emergency fund and building a retirement fund-all of which ordinarily demand some degree of austerity and financial discipline on one hand. At the same time, there is the pressure to live each day at a time, live luxuriously and enjoy life while it lasts.
So, how do you balance between the two extremes?
The ever-rising cost of education poses one of the greatest challenges for most parents. And at the heart of the issue is the question about how to give your child quality education without breaking the bank.
Personal finance experts say the process requires one to think realistically. Pauline Oyugi, an education consultant, says that one does not need piles of money to afford quality education for their children. Instead, what one needs ‘intelligence’ so as to exploit the loopholes in the education system.
“You can begin your child’s education in a private kindergarten and nursery school and then enroll your child in good performing public primary school,” she says.
“Alternatively, you can enroll them in a private school up to middle primary before transferring them to well performing public schools,” she says.
This according to her will give a parent a “breathing space”, to accumulate some savings for the next financially demanding stage, which is the secondary school.