Jakarta, CNBC Indonesia – Preparing education funds is something that every parent must do for their child. With good education, children can grow into an intelligent and brilliant generation.
However, preparing education funds must be done carefully. The reason is, now the cost of education is quite expensive and requires proper planning. Moreover, education costs also experience inflation which can reach 5% per year.
Parents are also advised to prepare education funds well in advance. CNBC Indonesia Financial Expert, Olivia Louise, said that parents must prepare these funds as quickly as possible, even when they plan to have children.
“Because of saving or put it aside In the long run it will be easier than just preparing when you want to go to school. An easy example of saving for school for a child who wants to enter kindergarten in 3 years, needs IDR 10 million, if we prepare it in 3 years, every month we only need to save IDR 280 thousand per month. “But if you’ve only been preparing for 5 months, you may have to set aside IDR 2 million per month,” said Olivia at the CNBC Investment Expo some time ago, quoted Monday (20/11/2023).
In preparing funds, Olivia revealed that there are several strategies that can be prepared. First, decide where your child will go to school. Second, find out the current cost of education and inflation in the next few years.
Then, the third way is financial evaluation. This is mainly done so that parents can set aside funds for investment. Olivia said that usually parents are more familiar and it will be more profitable if they choose gold instruments.
Gold is highly recommended for parents so they can better prepare their children’s education funds. The reason is, in the last 10 years, the average return on gold price increases has reached 6.5%. This will cover education inflation of 5%.
In line with Olivia, General Manager of PT Antam Tbk (Antam) UBPP Logam Mulia, Purwanto, gold is the most appropriate instrument for preparing children’s education funds because the average increase in gold prices can be higher than the increase in education costs.
“We calculate the child’s college costs at current prices, then convert them into gold value, usually the tuition costs in 5 or 10 years will not be far from the gold value. For example, we need IDR 100 million for a child’s college, then convert the gold when “This is worth 100 grams. In 10 years time, it is possible that a child’s college costs will be worth 100 grams of gold or even less, which will be enough for a child’s college costs,” said Purwanto.
Apart from that, gold is an instrument that has many advantages. First, gold is a hedging tool. This means that this instrument has proven to be resilient even when there is economic uncertainty, such as a recession. Second, gold does not fluctuate much in terms of price. Gold tends to rise high, then stabilize, so it will not worry its owners.
Third, ownership of physical gold will psychologically influence the owner not to sell it quickly.
“For example, suddenly there is a cheap price offer for a road ticket to Singapore, but we haven’t prepared special funds for traveling, if we have savings in the form of cash, we will easily use the cash to buy the ticket on the grounds that later we can save again, but usually No save some more too. “Meanwhile, if our savings are in the form of physical gold, we will think twice about selling the gold, it would be a shame if we sell it, especially for example, if we have a gold savings target of up to 100 grams, we already have 60 grams, it’s a shame we only have 40 grams left,” explained Purwanto.
Fourth, the price of gold in the last few months sideways. This means that an increase in the benchmark interest rate does not really affect the price of gold to fall, but rather sideways.
“In the last 10 years, gold yields have increased by an average of 6.5%. When compared to deposits, even in 2023 the decline will only be around 3.7-4% for a 12 month tenor. Gold is low risk. In terms of liquidity, gold is very easy to sell “You can go to our boutique or a gold shop. If it’s specifically for Antam gold, you can come to a gold shop to sell Antam gold, which will usually be accepted,” said Purwanto.
He added, in terms of accessibility, gold, especially Antam’s, can be bought online or at gold boutiques spread across 15 places. For your information, Antam has currently developed online transactions to make it easier for people who want to buy gold but are unable or lazy to go to the boutique.
“If you want to buy gold and don’t have time to go to the boutique, you can go through our website atmetalmulia.com and then it can be sent to your house. So it’s not a hassle,” he said.
Apart from 15 boutiques and online services, the company also has Safe LM which is a digital gold product that can be used for saving and buying and selling gold online.
“So, if you don’t want to sell a little, save it through Safe LM,” he added.
Not only for preparing education funds, gold investment can also be used for Muslims who have plans to go on the Hajj in the next few years. The reason is, if you look at the ratio of the price of gold to the cost of Hajj from year to year, there appears to be a significant decline.
In 1997 the cost of the Hajj was the equivalent of 310 grams of gold. Then, in 2007 the cost of the Hajj dropped to the equivalent of 145 grams of gold and in 2010 it fell again to 95 grams of gold. In 2015, you only need around 60 grams of gold for the Hajj. For 2023, the cost of the Hajj is less than 50 grams of gold. So, it can be concluded that saving gold can be a bridge to realizing the dream of performing the Hajj pilgrimage to the Holy Land.
For this reason, it is better for people to start buying gold from now because their gold investment will maintain its value.
[Gambas:Video CNBC]
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