"The only thing that money gives you is the freedom
of not having to worry about money"
Planning can be different for every family depending upon the age of child, type of the education child want to study, your current income, your assets and liabilities etc
Here are a few TIPS that may help kick-start your planning:
First, make an estimate of the costs that will go into your Childs education. Your cost should take into account inflation.
We can take an insurance that covers the life of the working parents. If God forbid anything happens to earning person, insurance companies pay the sum assured, so that child’s education does not suffer.
Regular reviews of the plan will help you stay on track with your target goals. Review it at least half yearly and with every major life change such as new child, career advancement or moving to a bigger house.
You could consider increasing the amount of contribution annually or top up your regular contributions when your income increase such as when you receive a bonus or get a pay rise, in order to meet your target earlier or achieve an even larger fund.
Choose a plan that locks in your funds for your children’s education till they are ready to leave for college. If it is easy to cash out the education fund, chances are you may be tempted to use the money for other emergencies or needs that may crop up in life.
Encourage grandparents or relatives who shower your children with gifts to consider opting for a cash contribution towards their education fund.
Visok Advisors is a Authorised Partner with
Aditya Birla Money for Broking and Distribution.