Financial Planning for Child Education
Child Education Planning is an important aspect of planning for their future. As Parents, we dream to give the best education to our children.
But..??
Have you thought How much the education will cost in future ?
Do you know ??
In last 10 years, the cost of education has jumped 10-12%
So, if you are thinking to take Education Loan then, here is the EMI Calculation.
Education Loan EMI
Loan Amount | 25 lakhs |
ROI | 10% |
Time | 10 Yrs |
EMI | 33,038 |
Interest Amount | Rs 14,64,522 |
Total Payable | Rs 39,64,522 |
On the other hand, if you start planning systematically from today, then let’s see how much you need to save for your child’s education.
Child Education Plan
Amount required after 10 yrs | 25 lakhs |
ROI | 12% |
Time | 10 Yrs |
Monthly Saving | 11000 |
Why burden your child with huge loan EMI when you can plan easily. Start with small savings now.
Child Education Planning
Here are some steps that you can take to create a plan:
- Determine the costs: Start by estimating the cost of your child’s education according to the career which he/ she might opt for in future.
- Start early: It’s important to start planning for your child’s education as early as possible. The earlier you start, the more time you have to save and invest.
- Set goals: Determine how much you need to save each year to reach your goal. This depends on how much you need and how much you can keep aside for your child’s education.
- Consider different savings and investment options: You have several options for saving and investing for your child’s education, such as savings accounts, bonds, mutual funds, and exchange-traded funds (ETFs). Each option has its own risks and benefits, so it’s important to research and choose the best one for your needs.
- Automate your savings: Set up automatic contributions to your child’s saving plan. This way, you won’t forget to save and it will become a habit.
- Monitor and adjust your plan: Regularly review your plan and adjust it as necessary based on changes in your financial situation or your child’s education plans.
With careful planning and discipline, you can help your child achieve their educational goals while also maintaining your financial health.