One can spend a fortune just trying to send your child to college. Some parents continuously
borrow from their child’s first day in college. Why borrow? When you can save for your child’s college funds without hassles.
Standing order (banking) is a means of savings for your child’s college funds.
Definition from wikipedia
“A standing order (or a standing instruction) is an instruction a bank account holder (“the payer”) gives to his or her bank to pay a set amount at regular intervals to another’s (“the payee’s”) account.
The instruction is sometimes known as a banker’s order.”
Standing orders are Regular automatic payments already pre-arranged and pre-determined except on new instructions given by the bank account holder.
The standing order is typically used to pay rent, mortgage or any other fixed regular payments.
Now, because the amounts paid are FIXED, a standing order is not usually suitable for paying VARIABLE bills such as credit cards or school fees and utilities such as gas or mobile phone bills and electricity bills.
You can get more on different kinds of account, family offers and general knowledge on Banking
Our focus is on standing order for the children; as a guide to saving for your child’s college funds.
Do you know that as a parent you can save for your children using a standing order request?
Standing orders are placed at periodic intervals where a certain amount is transferred from your bank account to that of your child’s.
This can be monthly, bi-monthly, quarterly or as specified.
A fixed amount is deducted from your account and credited to your child’s account thereby relieving you of the hassles of bank visits and recalling pay dates.
Imagine saving N2,000 every month , in a year you will save N24,000. In 15 years, you would have saved N360,000 for your child’s college funds.
The requirements for a standing order that is generally common in all banks are;
- Letter of request and requirements addressed to the branch manager of the bank you are using – this would contain your name, address, date and account number details. The amount you want deducted periodically e.g N5,000, when or the date you want the standing order to be effected e.g 3rd of every month and recipient account number, that is your child’s
- Account opening form – this is for your child incase you haven’t opened an account for him/her before. This is where the deductions will be deposited when the standing order is effective. You have to fill all mandatory areas in the form.
- Passport photograph – 1 for you and 1 for the intending child. This will be attached on the account opening form or the required documentation.
- Utility bill – this is a common request from banks. This authenticates your place of residence and to show you are a member of society.
- Birth certificate of the child – this isn’t mandatory, depending on the bank’s requirements.
Why Use a Standing order For Saving For Your Child’s College Funds?
- Total control – you get to control the funds and receipt for your child. The bank does not take any actions without your knowledge hence alerts on deductions can be viewed on your mobile or as requested.
- Convenient – relieving you of the hassles of bank visits and recalling pay dates.
- Save time and money – the time spent visiting the banks for deposits to your child’s account can take up your time and money. Transport to the bank, fueling your vehicle, time away from your business can lead to loss of that time period income.
- Secure – since it is pre-determined, it is a very secure and safe means of transferring money to the recipient because it is automatically deducted.
- Privacy – No one needs to know your business or question your movement. Even your spouses except you tell them. It’s on a need to know basis.
You can agree with me this is a good way to go.
Please parents, visit your bank to get more information. Save for your child’s college fund, save for their future.
In this time and age and our economy, every means is necessary.
Believe it, it’s a lot easier now to save for your child’s college funds with standing order.Share!