The ultimate guide to planning your kid’s bright future!

Being a parent is certainly not easy and we truly appreciate all the hard work & effort you put in, to give the best of this world to your kid(s). Right from holding your kid for the first time to being there for them when they take their first step into college, Mrs Worries-a-lot is up round the clock!

So, also when it comes to planning for your child’s education, you want to find the best options. That’s how we end up being caught in a web of indecision. There are many factors that can lead us to this situation -

Uncertainty: We don’t know what the future holds. Our kids might end up being a doctor, a dancer, a cricketer and what not when they grow up.

Endless Options : Even when we find the perfect career for them, we end up getting confused between endless schooling options. Whether to send them to a posh private school or an Ivy League college or send them a thousand miles away for a Master Degree.

With such varied hurdles to overcome, we should be well prepared to face anything. This means planning your child’s future in such a way that we are financially ready for all possibilities. But, how to do that?

Follow these tips and you will always be the dependable, rock solid parent.

Set a Budget: Children’s education has become more expensive than when we studied, back in our days. Set a budget after researching current costs of prospective school/ college and keep the inflation rate in mind (add 5 to 7% per year for that). Please refer to this table showing the projected value of ₹50,00,000 over the next 18 years, assuming a 6% annual inflation rate:

Keeping the set budget in mind, we move ahead.

Pro Tip: Determine your time horizon by calculating the number of years until your child starts their education. This will help you understand how long you have to save.

Percentage Cover: Understand if you want to cover 100% of the education cost, apply for a loan in the future or any other mix.

Choose Your Investment Options: Depending on the target year, you could choose from various investment options like Mutual Funds, Digital Gold, Stocks, PPF, FD and Insurance. Based on the budget, you could try a combination of these options or diversify by investing in all.

Calculate Savings: Use online calculators to determine how much you need to save monthly or annually to reach your goal. Factor in the estimated rate of return from your chosen investment options.

Pro Tip: Automate your investments and savings so the consistency is maintained and strictly followed. Don’t forget to regularly review your investment plan to account for changes in your financial situation, market performance, and updated education costs.

Additional Pro Tips:

Start Early: The earlier you start saving, the more time your money has to grow.

Grants and Scholarships: Encourage your child to apply for scholarships and grants to reduce the amount needed from savings.

Involve Your Child: Teach your child about the importance of saving and budgeting for their education.

Now, with a ton of information in your hands, you can go ahead and plan the brightest future for your children. And with that much less stress on your head you can be the fun and cool set of parents! Enjoy your kids' childhood while giving them a secure future.

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