education fund
Also called: tabungan pendidikan
Money set aside specifically for children's school costs.
What it means
An education fund is money set aside specifically for children's school costs, from enrollment fees to tuition. This fund is usually collected gradually over years. Because education costs tend to rise, families need to plan from the start.
Why it matters for families
Education costs are often a large expense that comes at a certain time, such as the start of the school year. Without a dedicated fund, families may be forced into debt. Setting aside a little at a time from early on eases the burden when those costs come due.
Example
For example, a family estimates it needs Rp60 million for a child's college in 10 years. If they set aside Rp500 thousand per month, Rp60 million is collected in 10 years, not including investment returns. This figure is only an illustration and needs to be adjusted to each family's situation.
Common misunderstanding
Some people delay saving for education because they feel the child is still small. In fact, the earlier you start, the lighter the monthly deposit.