- Date : 22/09/2020
- Read: 3 mins
It’s never too early to start financial planning for child education, but it can get too late, too fast. Here’s how to take control of your child’s future.
“Summary - It’s never too early to start financial planning for your child’s education, but it can get too late, very fast. Here’s how to take control of your child’s future. “
Did you know that the cost of primary and secondary education increased by 169% due to inflation from 2005 to 2011? Or that education at a private boarding school in India can cost up to Rs. 25,000 per month? Or that a medical degree can cost (per annum) up to Rs. 10 lakhs in a government-aided college and up to 20 lakhs in a private institution?
These are some of the startling facts about the cost of education for your child in India. What these numbers highlight is that one of the imperatives for parents with growing children is to understand education costs and have a sound plan for their children’s education. It is critical to know how to save and how much to save.
It is absolutely crucial to realise the value of starting education planning early, as delaying can prove to be detrimental for your children’s future prospects. You need to peruse the various options and get a clear idea of your child’s education costs and plan accordingly.
Here's a child education cost calculator to help you calculate how much your child’s education will cost. This can work brilliantly to help you come up with a sound education plan and subsequent investment plan.
Thinking long-term is absolutely crucial
If your children are still very young, then there may be a tendency to slack off, as you think that monetary requirements for higher education are still several years away. However, this belief system can backfire. Planning for your child’s education early is of utmost importance. This will not help you plan for their higher education, but also for the ensuing four-five years to aid in their post-graduate studies.
Formulating and sticking to a properly structured investment plan is an absolute necessity. A long-term investment plan will not be affected by market fluctuations, corrections or political agendas.
It is always smarter to start putting aside small sums of money today, rather than endure the tension of large payments years down the line. Estimate your child’s education costs the help of the child education cost calculator and work backwards to form your investment plan.
Of the few constants in life that you can be sure of, ever-changing economic fluctuations is an indispensable one. Hence, the effects of inflation must be taken into account as well. Allowance also needs to be made for an exigency period where you may not be there – you definitely don't want your spouse dealing with the entire burden on their own, or for your children to let go of their future dreams and prospects.
Start financial planning for child’s education as soon as you plan to start a family. Like we said, it is never too early.
To get started, here is A Close Look at Child Plans in India