Every parent dreams of giving their child the best education possible ā top schools, excellent coaching, and opportunities for higher studies, both in India and abroad. Achieving this requires careful financial planning, as education costs are rising rapidly.
Investing in your childās education is not just about funding tuition fees; it is about securing their future, giving them choices, and ensuring they can pursue their dreams without financial constraints. Without a proper plan, education expenses can become a major financial burden.
Starting early is the key. The earlier you begin planning, the more time your investments have to grow, making it easier to meet future education costs. This is especially important if you aim for top institutions or overseas education.
Suppose Mr. Sharma has a 4-year-old daughter who will enter college in 14 years. He wants her to pursue a medical degree. If the current estimated cost of her graduation is Rs 12 lakh, how much should he invest today to ensure he can meet this target in 14 years? A well-structured education plan can answer this question and guide him step by step.
You see, as seen in the table above, the cost of education after 15 years will rise to Rs 41.77 lakh due to inflation. And to fulfil this goal, Mr Gupta will have to invest Rs 8777 per month, assuming he earns a return of 12% per annum.
However, if Mr Gupta delays this investment, and begins to save for his sonās education five years from now, the investment will be more than double, i.e. Rs 17000 per month.
Similarly, to ensure your child receives the best education, you need to prepare yourself financially. If you plan now, chances are you will not compromise on your childās future, his/her dreams, aspirations, and ambitions.
So here we understand without the proper financial planning we are not able to achieve any goals even child education planning. We always need the guidance of a financial planner or advisor for suggestions on where to invest, how much amount to be invested to reach that level. So every stage of life we need step by step approach for financial planning.
Child education planning is mostly a long term goal for individuals, we have enough time but it is always good to start early investment and long term oriented fund which gives cut to cut return that time.
In India most of the students are not able to do a masterās after graduation just because of the money crisis, yes we canāt ignore banks are providing education loans but this is the kind of debt that comes with the highest rate of interest. So why donāt we start planning and investing in a proper way by the way investment is laying out money now to get more money back in future.
