The need to plan your child's education -
"If you think education is expensive, try ignorance."
This quote is often repeated to encourage people to opt for education. It has never been truer than today. Education indeed, has become expensive
The rising cost of education
Almost every professional education has become expensive and will continue to appreciate in price. There are two reasons for this. One is of course the unbridled inflation and the other is increasing demand which makes it easy for schools to raise the fee at their will
Planning for it
It is advisable that parents work backward on the savings needed for educating their children. You have to know how much you may need 10 years or 20 years down the line and plan accordingly
1) Start NOW..the early you start ..the better your objectives will be met
You need to put money in a balanced fund, a mix of debt and equity, is riskier than debt funds but offer much better returns over longer time. The returns can be anywhere between 8% and 14%. We have taken 11% as the average return over 10 years
2)The second important point is discipline to stick with the plan.
Never ever think of withdrawing money in between, no matter how small is the amount. These small leakages are the biggest hindrance in building wealth.
3) Loans - Government is pushing our banks harder to provide education loan to students
It is advisable to parents to look for this option too. You may be doting father or mother but you have to ensure that your old age doesn’t suffer because you spent all your money in your child’s education.
This quote is often repeated to encourage people to opt for education. It has never been truer than today. Education indeed, has become expensive
The rising cost of education
Almost every professional education has become expensive and will continue to appreciate in price. There are two reasons for this. One is of course the unbridled inflation and the other is increasing demand which makes it easy for schools to raise the fee at their will
Planning for it
It is advisable that parents work backward on the savings needed for educating their children. You have to know how much you may need 10 years or 20 years down the line and plan accordingly
1) Start NOW..the early you start ..the better your objectives will be met
You need to put money in a balanced fund, a mix of debt and equity, is riskier than debt funds but offer much better returns over longer time. The returns can be anywhere between 8% and 14%. We have taken 11% as the average return over 10 years
2)The second important point is discipline to stick with the plan.
Never ever think of withdrawing money in between, no matter how small is the amount. These small leakages are the biggest hindrance in building wealth.
3) Loans - Government is pushing our banks harder to provide education loan to students
It is advisable to parents to look for this option too. You may be doting father or mother but you have to ensure that your old age doesn’t suffer because you spent all your money in your child’s education.
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