Educational Planning within the context of family and personal finances refers to creating a financial plan that includes saving for educational expenses. This type of planning helps families and individuals prepare for the financial burden of education and avoid taking on excessive debt.
One of the steps in educational planning is determining the anticipated education costs, including direct and indirect expenses. Once the anticipated price has been determined, families and individuals can create a savings plan to fund their educational goals. Students can fund education from various sources like loans, grants, scholarships, and saving vehicles such as 529s, whole life insurance, and custodial accounts.