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How to plan your child’s future education?

As parents, we all dream big for our children. We want to give them the best possible education. Education is very important in today’s world. If you want your child to get well-settled in life, you need to educate him or her. Only then will he or she get a good job, good salary, earn name, fame and luxury. But giving good education to a child is not easy for all parents. This is because the education costs are increasing alarmingly day by day and many parents are finding it quite unaffordable. To help them out, nowadays different children’s education programs & policies are available in India. These policies can help the parents plan their child’s future education.

There are different types of children education policies available and a parent has the privilege to choose the one that she or he finds to be best among the rest. For most of the plans, the premium is low enough and so it is not at all pocket-draining. By investing in a child education plan you are preparing yourself financially to handle the future expenses that would be required for your child’s education. If you don’t go for such investment, then when your child goes for higher studies you might be compelled to borrow a huge sum of money as loan and then be under the constant pressure of repaying the loan. Your child too might have to bear the load of loan repayment eventually. Under extreme situations, your child’s education might come to a halt because of fund shortage. So planning ahead and investing in an education plan is a wise decision. A child education plan comes with many advantages like life cover, corpus creation for future requirement of the child along with other necessary documents chosen by parents.

Here are some tips on how you should plan your child’s future education:

When you apply for the child education plan, try to keep your name in the place of the policy holder because that will function as an asset. Many banks and other financial institutions place uncountable financial demands which your child can’t meet. So not your child but you should be the policy holder.
There are a number of college plans available. Weigh the ‘ifs’ and ‘buts’ thoroughly. Study each plan and see how the investment in the plan can allow your money to multiply.
Before opting for a child education plan, estimate what fees you are capable of paying without the plan. Take in to consideration the earnings of your family and calculate how much you can pay to the college of your child.
There are many tax-free education plans available and it is wise to invest in such plans. Such plans offer amazing tax benefits to your family apart from securing the future of child. So you must always be on the look-out for such plans.
Investing in prepaid tuition programs is a good way to save money for child’s education. These plans are sure to rise in value at a rate that equals that of college tuitions.

harsha is chief Financial Excutive in Public Bank. He helps people by giving loan Assistance. Get more knowledge Housing Loan Interest Rates and Car Loan EMI Calculator HDFC Bank

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