[ad_1]
Check your financial situation and list of obligations before you begin to plan.
A study found that education inflation was closer to 11–12% in the last decade for which after every 6-7 years, education cost increases massively.
Inflation in the education sector is rising twice as quickly as overall inflation, according to a Bank Bazar analysis. The study found that whereas consumer price inflation hovered at 6% over the past ten years, education inflation was closer to 11–12%. As a result, the price of education doubles roughly every six to seven years. The parents must also make sure that their children do not have to compromise on their ideal programmes of study or institutions because of a lack of funding. We’ll explain to you how to set money aside for your child’s education in this step-by-step manual.
Start saving early
Find out when funding for children’s education will be required. You need to know when the child will graduate and when he will be a postgraduate in terms of years. You’ll need to set up a lot of money just for his higher education. The longer this time is, the better it will be for you. That is to say, the earlier you begin saving for your children’s higher education, the better you will be able to plan.
Make calculations based on your child’s aspirations
Determine how much can be allocated for education. But a lot of factors come into play, such as what your child wants to study, whether they’ll live at home or travel away for school, and whether they want to pursue their education abroad. All of these considerations must be made. In addition to this, you must additionally consider the annualized rate of inflation. If your child wants to get an MBA, the fee at IIM ranges from 11 to 30 lakhs. You may calculate how much a child’s education will cost over the following five years by adding an inflation rate of 11%.
Cut your coat according to your cloth
Check your existing financial situation and list of obligations before you begin to plan. Along with this, you must also keep in mind any other financial objectives you may have in addition to the child’s schooling. By keeping all the aspects in mind, you may make better planning decisions.
Start making deposits to save money
Once decisions have been made, see how much money you can start depositing. If you want risk-free savings and you have a lump sum amount, then you can deposit money in fixed deposits or post office savings schemes.
Sukanya Samriddhi Yojana
If you have a daughter, you can invest in the Sukanya Samriddhi Yojana offered by the post office. This programme is fully tax-free, and it also has constant capital growth. You can effectively save money in this way for your daughter’s education.
[ad_2]
Source link
