How to plan for child education expenses

How to plan for child education expenses

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As a parent, it is obvious to want to provide the best to your kids, be it schooling, clothes, toys or anything else. Education is the best gift that you can bestow on your kids and ensure a successful future for them. Though in India, education is a priority for every parent, there is a major concern in providing the best education, and that is the cost of education.

Parents make sure their kids work hard to crack interviews, tests, and make a strong portfolio to get admission in the school or college they aim for. But is that enough? Fees of good educational institutions, be it primary, secondary, or higher studies is increasing rapidly. This inflating rate of education can cause a barrier between the child and his/her dreams. Hence, to ensure that the child receives good quality education from the best educational institutes, parents must prepare a strong financial portfolio. If parents plan early, then their kid can enjoy admission in the best institute, and parents too will be freed from the burden of gathering funds to pay fees at the last moment.

Thankfully, there are children education plans that save you from the burden of gathering funds to pay the hefty fees for the education of your kids. Here are a few tips that will help you to plan for your kid’s education expenses in the right way and get easy approval for a children education plan.

1. Draw a timeline – The first step to plan for your children education planis to calculate the total number of years for your child’s graduation and postgraduation. The resulting figure is the timeline to plan and invest. Even if your kid is too young, it is advised to start investing at the earliest for better results from investments.

2. Estimate the cost of education – The next step is to estimate the cost of education of your child. Now in this, you need to take into account various factors like is your child going to stay close to the home or get the global exposure. Then where and which are the educational institutes in India as well as abroad for the field that kid chooses. Do you want your child to do both under and postgraduate courses abroad or just postgraduate? Most importantly, what will be the cash outflow needed in both the scenarios, including the future inflation rates.

3. Assess your assets and liabilities at the moment –It is always advised to analyse the investments already made that will help you to accumulate funds in future. Thus, when you start planning for children education plan, make sure you assess your existing assets and liabilities that will help you to know your current financial status and plan accordingly.

4. Estimate amount needed to be saved – When you know the approximate amount needed to provide your child with educational facilities that he/she aims for and your financial status, the next step is to start saving money for the goal. The best way is to put aside some money in a SIP or recurring deposits that will help you save in a proper manner and benefit you in the long term.

5. Get insured –You see so many dreams for your child’s future. You surely don’t want them to end abruptly in case you meet an unforeseen event like death. Thus, get proper insurance that will keep your family financially stable even in your absence.

6. Be prepared for additional expenses – Children education plan doesn’t just include fees of school and college. There are other expenses like tuition fees, material and stationery expenses, travelling expenses, and much more. Make sure you take into account the expenditure of such additional factors as well while saving for your child’s future.

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