- Date : 05/02/2018
- 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.
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 your child in India.What these numbers highlight is that one of the imperatives for parents with growing children is to understand the concepts of financial planning for child education - how to save and how much to save. At the cornerstone of this lies saving for your children''s higher studies.
In this regard, it is absolutely crucial to realise the value of starting early, as delaying can prove to be detrimental for your children''s future prospects. You need to peruse all the various options and get a clear idea about where and when to start.
Here's a child education cost calculator to help you calculate How much your child’s education will cost, which can work brilliantly to help you get a thorough idea about the kind of costs that you may incur, and the kind of savings that you should carry out for the same.
Thinking long term is absolutely crucial.
If your children are still very young, then there often 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. Starting early is of utmost importance in this regard, as you will not only be planning for their higher education when they turn 18 but also be planning for the ensuing 4-5 years from then, to aid in their post-graduate studies as well. Formulating and following a properly structured plan is an absolute necessity in the context of future planning and investment. It also implies that current market fluctuations related to short-term corrections or political agendas will hardly affect your long-term plans.
Additionally, think of it this way- isn't it smarter to start putting aside small sums of money today, rather than endure the tension of large payments years down the line, when your investments may be locked away or savings may fall short? So, take an estimate with the help of the child education cost calculator and begin investing.
Of the few constants in life that you can be sure of, ever-changing economic fluctuations is an indispensable one- so the effects of inflation must be taken into account as well. Stress needs to be laid on doing what is necessary immediately. 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.
A suggestion to start financial planning for child education right about the time you start planning for children may not be such a bad idea.
To get started, here is A Close Look at Child Plans in India