Today in India the expenses are increasing at an extreme level. All expenses are getting on the nerves right from the household expenses to the child’s education expenses. Your every decision plays an important role in developing your child’s future. You need to ensure that in future, they should not face any financial crisis. For this, proper financial planning is an essential thing.
Have a look at some of these tips which will be useful in planning for child education expenses.
Go for the proper research –
Before saving or investing your money, make sure that you have done a proper research over everything. Know that around how much money you will need for your child’s education expenses. Try to analyze everything before getting into it.
Start saving early –
It is the first and the most important thing that you need to start saving for your child’s future as soon as you plunge into parenthood. Starting early always helps you in analyzing the future expenses. Keeping aside a fixed amount can be a good start.
Try investing your money in different investment tools –
Nowadays, one will find a plethora of options when it comes to the investment tools. Life insurance companies have come up with various life insurance for children. You can go with the best child plan according to your requirements. Go with the child education plan because through this you can take care of your child’s education expenses.
Public Provident Fund –
By opting for PPF you can plan your child’s education expenses in a hassle-free way. You are likely to reap the tax benefits of you invest in PPF. The maximum limit of availing is up to 1, 50,000 under the section 80C. PPF helps you in inculcating a good habit of saving on regular intervals, as it comes with a minimum of 15 years lock-in period. Thus, you are bounded to lock money for minimum 15 years and are not allowed to carry out withdrawals before the lock-in period. With this, you can build a good corpus for your child’s education.
SIP Plans –
SIP is known as a Systematic investment plan which helps to build a good corpus for your child’s education. It is offered by various mutual fund companies and you can go with the option of starting the investment weekly, monthly or quarterly. This plan is a flexible one and thus you can invest at regular intervals. You are free to start your investment with a meager amount of Rs 500 and so on.
Accumulating wealth for child’s education should begin as early as possible. These stated tips are quite useful. You would find it pretty easy in planning for child’s for future.