These days, education has become quite costly and until you save money for your higher education with time in hand, you may be filled in debts at a later stage in life. Precisely, education planning is a rational decision that should be taken by parents at a very early stage when their children are small. Some parents think of child education plan when their child has just born or will get born.
Worried about your Child’s college expenses- What can you do?
As caring parents you will definitely want to take care of your child’s dreams and fulfill hi/her academic wishes. As your child grows and reaches the final year of high school, you may start worrying about how to save money for his/her college expenses. Many students do not want to study further after high school, so in that case you may not have to worry much about educational expenses. However, if your child expresses his/her desire to study in college for higher education, then the expenses jump to an exorbitant rate that you as parents may not be able to arrange at the nick hour.
The best advice is to plan your child’s college expenses ahead of time. Aside from paying off for your child’s education you have to think of other expenses too like a grand wedding for your child when he or she grows up. However, before thinking so far, you need to take one step at a time and fulfill your little one’s desires. First and foremost, as parents your responsibility is to think about a highly-yielding child education plan. Most parents have dreams for their child, so if you want your child to be an engineer or doctor when he/she grows up, you should making adequate financial planning for your child’s college, which becomes a costly affair.
An example to give you Idea
Suppose Mr. Agarwal has a 3 year old child who is going to graduate after 15 years. If Mr. Agarwal wants his son to study engineering, then he should know that the cost of graduation in today’s scenario is Rs. 5 lakhs and more. Then, he will have to calculate how much he would need to send his son to engineering college after 15 years.
What is the Solution?
He should be aware of the fact that the cost of education is likely to jump to Rs. 20 lakhs and more due to inflation after 15 years. Now, if Mr. Agarwal invests more than Rs.4 ,000 every month with a return of 12 percent per annum will help him attain his financial goals. However, if Mr. Agarwal delays the investment, and start accumulating fund after five years from now, then he will have to invest more than double, i.e., Rs. 10,000 and more per month.
True, that child education plan is a costly matter, given the rise in cost of schools, colleges, etc. Besides, the cost of higher studies is always high and is likely to get more costly in the years to come. Financial planning means planning, saving and making investments for your child’s education, be it college or university.
If your child is just born, and you have only started to think of a fruitful child education plan or policy, then think of a few policies.
A Couple of Policy advice for you
- SBI child Plan- SBI presents the best child planner that you will need to achieve the best for your loved one’s education. SBI child plan comes with several advantages; visit their website to learn about them.
- ICICI Prudential child plan- Use the ICICI Prudential child education calculator to make decisions about the various investments required for your child’s education. The plan offers an ideal way of saving money.
There are several other child education policies available. You may buy the best online and make sure that you have a yielding child education plan that will give you the adequate amount of money when you need it the most for your child’s higher education.
