TRUST Indians bank upon




Share it...


Invest now and retire rich


Must View ...

 


Financial planning for higher education

 


How to plan for child education expenses

“Education is the key to unlocking the world, a passport to freedom” – Oprah Winfrey.

As parents, it is natural to want the very best for your child - the best schooling, best opportunities in life, etc. But you see, education is one of the best gifts your children can receive. Even though education is the most important priority for parents, the costs are a major concern.

Plan and START saving TODAY, or TAKE education LOAN later...

Choice is yours...
Put a plan in place: One needs to put a plan in place by setting up a target amount for child’s education needs. The world is witnessing newer types of courses and it might be difficult for you to zero-in at the career option which your child might take up in the future. Still, to make an informed start, identify 2-3 career options and find out their current cost. Inflate it by considering a conservative inflation of 8 percent per annum for the number of years after which the child would require funds.

The class of 2018 of the Indian Institute of Management-Ahmedabad will pay Rs 19.5 lakh for the two-year course. This is 400% higher than what the premier B-school charged in 2007. If the fees of the two-year management course continues to rise by an average 20% every year, it will cost roughly Rs 95 lakh in 2025.

At an average running inflation rate of 10%, a four-year engineering course that costs Rs 8 lakh today is likely to set you back by Rs 17 lakh in another eight years’ time. By 2030, the same would cost more than Rs 30 lakh.

If you have not planned well, you could get a rude shock, falling way short of the required corpus when your kid is ready for college.

Hence, a financial plan to achieve this goal is very important. If you already have children, the earlier you start planning, the better. Especially if you want your child to attend good institutions and abroad.

Starting early also put lesser burden on your finances because it requires a smaller outflow.

Step 1: Decide Your Time Horizon

How much time you have to save for your financial goal?


Step 2: Estimate The Cost Of Education
How much your expected EDUCATION cost TODAY, and how much it will be considering inflation levels of economy.

Step 3: Assess Your Existing Assets and Liabilities

Cover your liabilities, and evaluate your assets

Step 4: Know The Amount To Be Saved Now

Get the AMOUNT needed to be saved to reach your FINANCIAL GOAL?

Step 5: Get Yourself Adequately Insured

Unexpected mis-happenings shall be covered well in advance, as if they can brak your childs career plans to pieces.

Step 6: Prepare Yourself For The Unexpected

 

Get proper medical covers as if a major HOSPITAL BILL can blow your annual budgets unexpectedly.

 

Financial Planning is an ART, its not a GAME that every one can PLAY.

Get your experts today...

 

consult our senior advisors for

Financial planning for Expectant Parents

Financial planning for New Parents (having child 0 - 12 months age group)

 Financial planning for Parents with toddlers (child 0 - 3 years age group)

 Financial planning for Parents with pre-schoolers (child 3 - 5 years age group)

 Financial planning for Parents with early school goers (child 6 - 8 years age group)

 Financial planning for Parents with pre-teens (child 8 - 12 years age group)

 Financial planning for Parents with teens (child 13 - 18 years age group)