Quick Tips to Plan Your Child's Education Better

If you are a parent or parent-to-be, then the only precedence in your life should be fortifying your child’s present and future. There is nothing more crucial for a parent than their children’s happy future. Which unfortunately costs a lot of money.

So, if you want to plan your children’s education wisely, here are a few tips that can help you out:

  1. Inculcate the habit of savings and plan out a monthly budget

The first thing you should do is plan your monthly budget and set a target-amount that you need to save monthly. After you have set a target, work towards it daily and ensure that you manage to keep enough money to meet your goal. Mapping out a monthly budget isn’t just helpful for setting aside money every month; it can also inculcate the discipline of saving regularly.

  • The earlier you start, the better

A critical part of financial planning for your children’s education is to start as early as possible. The current fees for an MBA are India is around Rs. 15-20 lakhs, while the cost for pursuing MBBS is way more. Education abroad costs around Rs. 30-50 lakhs. These prices might increase in the next 15-20 years due to inflation. Thus, it is crucial to start creating a corpus as early as you can. Also, the earlier you start planning, the more options you have to factor.

  • Keep a long-term investment horizon

Planning your child’s education and future should be a long-term goal. When you start early, your investment horizon becomes long. This helps you plan out every single aspect like your savings, the child education plan to buy, and other investments. The longer you are accumulating corpus, the better chance you have of providing top-notch education to your child.

  • Identify your existing investments

You may already have put money in several schemes like PPF (Public Provident Funds) or FDs (Fixed Deposits). Your current assets can help you achieve the financial goal set for the education corpus. You should get a clear idea about how much more money you need to invest to reach your financial target.

  • Get a Child Education Plan

Getting the right plan for your child’s education is a stepping stone towards your child’s bright future. A good education is expensive, and you need a robust plan to help your child get the best possible one. Such a plan helps you plan your children’s future financial requirements by creating a corpus over a long period.

Securing a child’s future is every parent’s responsibility. Follow the above tips to make sure you generate enough funds to provide for your child’s future. Before buying a child education plan, ensure that you compare and analyse all the available plans. You can even use a child plan calculator to determine investments that will fulfil your child’s dreams.

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