Financial Strategy for Managing Education Funds to Avoid Pressure in the New School Year

Entering the new school year in June and July often proves to be a tense moment for family financial stability. Financial planner and founder of the educational platform DNA Finance Indonesia, Aliyah Natasya, revealed that many parents fall into financial difficulties due to improper fund management patterns. According to Aliyah, a fatal mistake frequently made is trying to cover large annual education costs solely by relying on the current month’s salary. “The result is that June and July always feel financially devastating,” said the MSc graduate in Economic Competitiveness and International Business from the University of Birmingham. Aliyah emphasised the importance of differentiating financial management based on expenditure time horizons. She advised parents to separate routine monthly needs from periodic or annual education costs. To avoid financial pressure, Aliyah recommends implementing the sinking fund method. This method involves accumulating funds gradually each month to finance expenditures with predictable schedules. Practical steps that parents can take include clearly defining the amount and schedule of children’s education expenses from the start, opening a separate account specifically for education funds, and automating monthly transfers to that account. Aliyah stressed that the key to successfully managing education costs lies not only in the size of income but in consistency in building a disciplined family financial management system. By separating accounts and automating savings, the risk of education funds being used for daily consumptive needs can be minimised.