Tips For Building Your Child Education Planning

As parents, it is natural that you will provide the best of everything to your child, especially when it’s related to education, best schooling, facilities, etc. As you know, spending on a good school will provide your child with a good quality education that will shape their future and give them the best opportunities in life.

Even though education is the most important priority for parents, education cost is the major concern when they are planning to send their child to a good school. But, planning ahead in advance will give you plenty of time to assess your expenses, make a budget and pay for your child’s education.

So here is the step-by-step planning process for your Child Education Planning in a Bangalore.

Financial Planning: Financial planning is very important to achieve your biggest goal i.e your child’s education. And moreover, starting early is better so start planning from the day when your child is born especially if you want your child to attend good institutions.

Calculate the Education Expenses: Make a rough calculation of the total cost of education of your child from their nursery admission to their higher studies include all the costs which depend on various factors such as whether your child would be studying in India or abroad and make a rough idea depending on the School Fee Structure plus do not forget to add the rate of inflation.

Investing in a Good Portfolio: Not just saving, investing those amounts in a good equity fund will provide you with a valuable return. By the time your child is ready for school or college or higher studies, 15-18 years is a good amount of time to play with equity funds as volatility in returns is flattened out.

Assess Your Existing Assets and Liabilities: Listing down all your assets and liabilities will help you to figure out where you stand today, how is your current cash flow and will also help you plan for the future.

Insuring Yourself is Necessary: Having a family insurance policy is a must, especially for the person who is the only earning member in the family and there are other members who depend on him. It’s important to secure your and others’ future by taking insurance so that in case something happens to you, your family shouldn’t suffer and your savings for your child’s education are not used for medical or other expenses.

Research: If you plan well in advance, you do not have to shell out a large portion of your savings to provide the best education to your child. No doubt the best education comes with a price tag but if you research well, there are many schools where their School Fee Structure is quite affordable. So always research well while selecting the school for your child. 

Save More Than Forecasted: Always prepare yourself for additional costs, because no matter even if you have planned well there may be many additional costs that will come which will increase the cost. So, it is recommended to save more than forecasted as these buffer amounts can be used for unforeseen expenses.