Planning - A Must to Fulfill Your Child's Education Goal

Planning for your child’s education is one of the vital goals for every parent. It also forms a significant part of your cash outflows. However, as compared to other monetary objectives, it is relatively simpler to arrange finances for kids’ learning since the duration is fixed.

At the same time, the cost of higher education is presently quite high and estimated to grow at 10-12 per cent annually ( ET Research 2014) . Parents need to effectively plan their child’s education to avoid a financial crisis later. Given below are some valuable guidelines:

Determine a specific time-period and amount:
Parent must set a date for achieving education goals of their children so that they are ready with the funds. It can be 6-7 years when your kid begins school or 21-22 in case of higher education. In addition, it is vital to establish the amount of money which would be needed to fulfil your child’s aspirations. Fee structure varies for different courses hence you should carry out proper research and then take steps for financial planning.

Start saving early:
Don’t begin thinking about funding your child’s education when he takes his first step. Commence the saving process the day your baby is born. Delays will result in smaller corpus whereas saving over a long period of time will help to accumulate greater amount plus the money will multiply too. Start early so that you don’t have to compromise on the course/institution and your child gets the best education.

Select an appropriate investment route:
Investing in the right tools is important to ensure your child’s education is not hampered. Go through the Child Education Plans offered by various companies and check if it meets your requirements. You can also invest certain amount in the mutual funds and the rest can be put into fixed deposits and tax-free bonds. Take the help of an advisor to develop an efficient investment plan for your kid’s future.

Consider other financial aid such as scholarships:
If your kid is brilliant in studies or extracurricular activities, then you can opt for financial assistance in the form studentship, internships or grant. Such assistance largely helps in planning finances.
To conclude, make sure you stick to the financial plan you have developed so that there is no roadblock in your child’s desire to pursue his preferred course. Review the plan on a yearly basis to ensure that it is going exactly as per your goal.

So this Children's Day, take the first step in safeguarding their future...........