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Personal finance part2: why paying fees for children isn’t an investment

The biggest cost any average person incurs is living expense. And if you haven’t carefully planned for your incomes, you might end up having all your expenses in the living expense. Living expense includes leisure, food, utilities, clothes etc. It is likely that all the money meant to be invested for your future, you are putting it into living expense. Living expense are not critical needs.

When we say someone is needy, it means they can’t meet their minimum requirements. But if you are spending money into things that are more of life style and leisure, you are eating your future, today.

You can put maximum 40% of your income in the fixed costs. This includes school fees, monthly rent, defendants. Note that paying school fees for your children or defendants is not an investment per see. It is an investment to empower them so that they make a great life for themselves in future. You don’t want them to suffer because they lack the skill and knowledge to survive.


When we say someone is needy, it means they can’t meet their minimum requirements.


This is one of the things I have realized when I am discussing with most people. They think paying school fees for the children is an investment. An investment is where you put money and get more money. Paying school fees for you children is a risk. You might spend money and the child work hard to succeed. The reason why a parent should pay schools is to ensure the children can have their own great life. While in their old age, they don’t come back to begin stealing from the parent.

Once your child gets married, the heart beat might change. The only way as a parent is help them be able stand on their own. So that they don’t have to be coming back to the parents to seek for financial support. You want to avoid this. You want to empower to survive on their own. That’s why you take your child to the best schools, give them exposure, and network them to our friends.

You are failing as a parent when your child makes 22 years and are still at your home. They should be living on their own, finding soulmates and setting up their family. The earlier they do it, the better.

Fixed costs and living expense is about today. Where do you put most of your income? As you ponder about this question, go calculate your income. Get the total incomes you receive monthly, ignore the wind falls. Divide it and see how much is available to spend on a given area. If living expense and fixed costs take a large proportion, that is not sustainable. It means you have to go off your to crack deals so as to maintain your lifestyle. That is unethical.

Personal finance part 1:

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