Why parents should start saving early for their children’s university

Contents

1. Protect against sudden fee hikes 2. Eliminate reliance on expensive credit 3. Harness compound interest through long-term investments 4. Cover hidden and variable expenses 5. Model financial discipline for children 6. Maximise matching and grant opportunities 7. Secure peace of mind and academic focus

Planning ahead by setting aside funds from a child’s earliest years builds a financial buffer that covers tuition, registration, accommodation and other school-related expenses.

Early savings eliminate the scramble for high-interest loans, provide flexibility for unforeseen costs and allow parents to benefit from long-term investment growth.

By spreading contributions over many years, families avoid last-minute stress, ensure seamless academic progress for their children and instill a culture of financial responsibility that benefits future generations.

Here are key steps to make your child’s university savings both manageable and effective.

1. Protect against sudden fee hikes

Universities periodically adjust fees to meet operational needs, from new laboratory equipment to expanded lecture halls.

A dedicated education fund accumulated over time absorbs these increases, preventing students from missing registration deadlines or compulsory classes due to unpaid balances.

2. Eliminate reliance on expensive credit

Emergency borrowing from banks or online lenders can carry double-digit interest rates and strict repayment terms. Consistent savings reduce or remove the need for loans, shielding families from debt cycles that can strain household budgets for years.

3. Harness compound interest through long-term investments

Regular contributions into education savings plans, government savings bonds or low-risk mutual funds allow modest amounts to grow substantially over a decade.

Even a small monthly deposit can accumulate into a sizeable lump sum, significantly lowering out-of-pocket expenses when university begins.

4. Cover hidden and variable expenses

Beyond tuition, students face costs for hostel fees, laboratory levies, textbooks, field trips and health screenings. An early-built fund ensures all these ancillary charges are paid on time, preventing exam exclusions or delayed graduations due to unpaid fees.

5. Model financial discipline for children

Parents who save consistently demonstrate budgeting skills and goal-oriented planning. Children exposed to this discipline learn to set aside money, track savings goals and appreciate the value of investing in education from a young age.

6. Maximise matching and grant opportunities

Several banks and educational foundations in Nigeria offer bonus contributions or matching grants for parents who maintain regular savings in approved accounts.

Starting early extends the period over which these incentives apply, maximising the total benefit without additional outlay.

7. Secure peace of mind and academic focus

With a fully funded education plan, parents and students enter each semester confident that fees and related costs are covered. This security shifts attention from financial worries to academic achievement, fostering a learning environment where students can excel without interruption.

Starting a university savings plan early transforms an overwhelming future expense into a manageable, year-by-year commitment.

By leveraging compound growth, avoiding high-interest borrowing and covering both tuition and related costs, Nigerian parents can give their children the gift of uninterrupted education and financial confidence.

EXPLORE: Prepare Your Child for the Future: 10 life skills they must learn before 13