Aman Tripathi (name changed) lost his father, the sole breadwinner, at an age when he was just about to pursue higher studies. But help was at hand, in the form of a child policy his father had bought 15 years ago from Life Insurance Corporation of India (LIC). It not only paid for his education but also took care of daily expenses. Tripathi is now the managing director of a big private company, and he is still thankful to LIC for financing his education, which eventually made him climb the professional ladder.
There is an important lesson for parents in Tripathi’s story. With admission season for MBA and a host of other higher education courses round the corner, parents could be shelling out anything between ₹10– ₹25 lakh for their wards at B-Schools in India. The price-tag could be several notches higher if the children are aiming for foreign studies.
The harsh reality is that costs are likely to double in the next 10 years, given the rate of inflation and depreciating rupee against foreign currencies. If not adequately covered, shelling out the sum could be a real strain on your finances. Alternatively, parents may opt for an education loan. But then, you bear the burden of paying interest, in some cases, till you reach your retirement age.
Parenting is a mix of fun, joy, hard work, and a different genre of responsibilities. Your lives spin around your children and often before you know they are ready to pursue higher education and a career, and then all set for marriage in a few years. The wedding budget could range anywhere between ₹15 – ₹25 lakh, if you live in a Tier 1 or Tier 2 city.
This story is from the December 2020 edition of Outlook Money.
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This story is from the December 2020 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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