Financial Planner: Three Common Mistakes Parents Make During the New School Year

Jakarta (ANTARA) - Financial planner and founder of DNA Finance Indonesia, Aliyah Natasya, has revealed three mistakes frequently made by parents in managing finances ahead of the new school year, ranging from using emergency funds to choosing schools that do not align with a family’s financial capabilities.

Aliyah stated that the new school year period often presents a challenge for families as various educational needs arise simultaneously, such as enrolment fees, uniforms, textbooks, and other supporting costs. However, according to her, financial pressure is often caused not solely by the high cost of education, but by a lack of planning.

“From hundreds of consultation sessions, I see the same pattern repeating every year,” Alisa told ANTARA on Thursday.

The first and most concerning mistake, she said, is the use of emergency funds or high-interest consumer debt to finance children’s school needs. According to Aliyah, emergency funds should be reserved for truly unexpected conditions, such as job loss, illness, or other emergencies, rather than for educational needs that can actually be anticipated well in advance.

“An emergency fund is not a bank. It is a family’s last line of defence for truly unforeseen situations,” she remarked.

The second mistake is calculating educational costs too narrowly. Many parents only account for tuition and enrolment fees, whereas there are various other components that need to be budgeted. She cited transport costs, digital devices such as laptops or tablets, internet data, extra tutoring, and school activities like study tours as elements that often escape family financial planning. Consequently, the prepared budget becomes insufficient when the new school year begins.

Aliyah noted that some parents choose schools that are “just manageable” rather than those that truly fit their financial capacity. This situation can create pressure if there are changes in income or the family’s economic situation in the future. She advised parents to review their financial capability for at least the next three years before deciding on a school for their child.

“I always tell my clients: review your financial capacity for the next three years before choosing a school. Because once you enter, it is very difficult to withdraw,” said Aliyah.

According to her, educational decisions should be based on the ability to pay consistently in the long term, not just the ability to meet the costs in the first year. “Do not buy a ticket that you cannot afford to pay until the destination station,” she concluded.