Save For Their Future

A five-step plan to help you invest in your child’s education.

- Jinsy Mathew

SAMPLE THIS. According to a 2015 Assocham Social Development Foundation survey, the cost of private school education in India has risen by a whopping 150 per cent in the last 10 years. While professional education has also become expensive, education inflation is spiking steadily, at the rate of over 10 per cent every year.

Speaking to 1,000 parents across 10 cities, with kids ages four to 12, a 2015 Nielsen survey found that children’s education was the top financial priority for 83 per cent of surveyed parents. According to the Assocham poll, over 70 per cent of parents spend 30–40 per cent of their take-home pay on kids’ education. Planning in advance makes it less daunting. It’s all about being prepared, so follow these steps and ease your worries:

1. Set your goal

Have a concrete plan to prepare for your child’s future. Tell yourself, “I have to save for my daughter’s law degree.” Consider the time horizon: While planning you will know when the cash will be required.

2. Determine the cost

There are several websites that can help you calculate the estimated future expenses, factoring in inflation, for different streams of education. Try agencyonline.sbilife. co.in/childeduplanner, hdfclife. com/financial-tools-calculators/ child-education-expense-planningcalculator or iciciprulife.com/ insurance-guide/financialplanning-tools-calculators