How to Plan for Your Child Education Fund?
Table of Contents
Being a responsible parent, one would always want to offer their children with the best facilities. The major priority for any parent or parent to be is to safeguard the present and future of their child and provide them with all necessities. However, with an increase in investment cost, it becomes more difficult for any parent to fulfil the financial requirement of their child. Nowadays, people are now more than ever realizing the need of financial planning to offer their children the best child education that would assist them economically in future.
How To Plan Your Child’s Education Fund?
The below mentioned points are required to plan for your child’s education fund:
1. Determine the Monthly Budget
Decide upon the target amount that you would require to save on a monthly basis and to ensure that it meets your monthly requirements.
2. Start Early Investment
Planning for the education fund of your child is a long term procedure. The ideal time for starting with the investment for safeguarding the future of your child is right after their birth. These days, the expenses for availing higher education is pretty high . Therefore, it is very important to understand the significance of early investment so that the advantages can be amplified when your child reaches the college age.
3. ULIP Plans for Child
Investing through a child ULIPs with the feature of premium waiver to make sure that the child receives the needed amount at the desired age. The option of equity fund is also available for child ULIP for the purpose of investment to safeguard the best benefits over a long period.
Also read - How To Fund For Your Child's Higher Education In Abroad?
4. Avoid Investment with Lower Returns
Nowadays, meeting the educational requirements of your children is a very expensive task due to the high inflation cost in the education industry. Thus, it is very significant to invest in those tools that offer you higher returns.
5. Recognize Your Current Investments
In case you have invested in several schemes like FDs or PPF, then these investments would certainly help you in fulfilling all your financial goals. Moreover, you must have a clear idea upon how much savings would be needed to meet the target.
6. PPF for Child Future
It is an investment scheme for 15 year that offers tax free savings. A person can also consider investment in PPF for the educational needs of your child by opening a Public Provident Fund (PPF) account for your child.
In a Nutshell
Being a parent is indeed a difficult job as they are required to handle several things single handedly. Half of the life of a parent is spent worrying about the future of their child and the shortage of funds may act as a hindrance in achieving the dreams of their child. Thus, it is always recommended to start investing for the higher education of your child.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
