Financial Planning for Kids Education: Education is also not untouched by inflation. This year also many medical colleges have increased their fees significantly. In today’s date, it is very important to prepare the education corpus for the higher education of the children. Because after marriage, the family spends the most on some item, then it is on the higher education of the children. The cost of education in India is increasing day by day, which is a matter of most concern for any parent.
Private universities like Ashoka, Jindal or Manipal charge an annual fee of Rs 5 to 11 lakh for undergraduate courses. That is why it is very important to start financial planning for the education of children from now on. So that when the time comes for the children to grow up, then the parents do not have to be suddenly financially burdened.
Education is also not untouched by inflation
Education is becoming increasingly expensive. According to an estimate, every year education is becoming expensive at the rate of about 10 to 12 percent. Every educational institute is increasing its fees every year. Inflation in the field of education is increasing at twice the rate as compared to the burden of inflation on the rest of the household expenses. For example, a decade ago, a two-year MBA course at IIM Bangalore had to cost Rs 13 lakh. But for the same course now more than Rs 23 lakh has to be spent.
In future also education will be more expensive. For example, for a 4-year engineering course, Rs 12 lakh has to be paid now, but after ten years for the same course, you may have to pay between Rs 25 to 30 lakh. For MBBS course in five-year private medical colleges, fees ranging from Rs 50 lakh to Rs 1 crore have to be paid at present. Just imagine what will be the fees of private medical colleges after 10 years. If financial planning is not done now, then it will be impossible for a middle class family to get higher education for their children.
do planning now
Education cost is getting expensive every year at the rate of 10 percent. Parents who want to see their children doing medical, engineering or MBA should start investing in better places now. So that when the time comes to enroll the children when they grow up, enough funds are available. First of all you should decide the target of the fund. Saving should be started in that direction. For this one should invest through Systematic Investment Planning (SIP). With the increase in income, the amount of SIP should be reviewed and it should also be increased from time to time.
Invest in Mutual Funds through SIP
Any investor should invest in mutual funds every month under SIP to meet their future financial goals. You can get information from your financial advisor about the best mutual funds available in the market which are giving great returns. One should invest in Small Cap, Mid Cap and Large Cap of good mutual fund houses.
Many experts advise parents to take a term insurance plan as well. If the parent dies, the goal of the child’s education should not be affected by it. Also, due to more expensive charges, they are also advising to ignore Child Product Plans.
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