How Do You Save Money for Education of Your Children?

Child education is one among the major expenses of parents who besides taking care of rents and EMIs have another very stressful liability to worry about. Child education expense starts to stress the parents the day the child is born.There are so many children education plans mushrooming in the market that educate you on how to start and when to start but parents fear buying it from the insurance agents as the latter intend to push their products on them only to earn more commission. However, following the below mentioned points would suggest you the ways to save money for your child's education

Read more
Best Child Saving Plans
  • Insurer pays your premiums in your absence

  • Invest ₹10k/month and your child gets ₹1 Cr tax free*

  • Save upto ₹46,800 in tax under Section 80(C)

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Nothing Is More Important Than Securing Your Child's Future

Invest ₹10k/month your child will get ₹1 Cr Tax Free*

View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Always pre-decide on the amount required: 

Start by targeting the amount and the date when it is required. What is is even more essential is to factor in the inflation rates while calculating the amount of funds needed in the future. The financial planning must always be done taking into consideration the future value of the child's education costs, and not the current value. The future value can be calculated using the following formula:

Amount required = Current value x (1 + inflation rate considered) raised to the power of (Tenure)

If you intend to utilize your existing investments while planning for your child's education, always calculate the future value of your investment.

The figure shown below should give you a fair idea about how inflation in education would change your future financial planning.

Be ahead of time: After deciding on the target amount, it is necessary that you decide on the monthly savings and investments to be made. As the amount that you monthly or yearly invest would grow over time. The longer time you invest your money for, the more it grows. The total amount gathered is exponentially proportional to the time period. This, in financial terms, is called power compounding. So, it is wise to start when your kid is born. Let us take the example of below mentioned figure to understand, why?

As you can see, the money has grown the best when it has been invested for longer time and in a riskier plan. The more the risk the more is your return. The growth/return story is synonymous with the time factor as well!!

Analyze the investment options: Educating children holds paramount importance in every parent's life. It is also a very costly affair and hence requires one to carefully assess their time horizon and risk appetite before making investment decisions made towards achieving these goals. It's recommended to compare child education plan and invest in properly diversified portfolio rather than investing in funds of single asset class. See the picture above to understand better.

Ensure Education costs are part of your Insurance cover:

Do not forget to include the cost of child's education, while calculating your insurance requirements. This ensures that any unpredictable events do not hamper with your child's education and keep the amount earmarked for the cause intact.

Evaluate the performance of your investments:

Always keep a check on your investment plan towards child's education and ensure that it is performing. Stay informed of the exact amount you have gathered and compare it with the amount you should have gathered at that time. Monitoring your portfolio at timely intervals will also aid in deciding the ideal time to re balance your portfolio.

Child plans articles

Recent Articles
Popular Articles
Which Is The Best Plan For Girl Child?

30 May 2022

Picking the best plan for your daughter may seem like a task but...
Read more
Government Child Education Plan

30 May 2022

India is a country that witnesses a huge school drop-out rate of...
Read more
15 Year Child Education Insurance Plan

30 May 2022

Child life insurance policies are used to build a fund to cover...
Read more
Triple Benefit Child Plan

30 May 2022

These are child plans that offer combined benefits of a life...
Read more
Child Care Plan

30 May 2022

A comprehensive child care plan should be a combination of both...
Read more
Best Child Investment Plans to Invest in 2022
Planning for the child’s secured future is not an easy task. Most of the people try to create a strong financial...
Read more
LIC Policy for Girl Child in India
A child insurance plan is a plan that acts as a blend of investment and savings while also providing the child...
Read more
Post Office Child Plans
Individuals can open post office savings account for their children and earn interest at a rate of 4% to nearly...
Read more
Prime Minister Schemes For Boy Child
Like the Prime Minister’s Sukanya Samriddhi Yojana savings scheme for a girl child, there are several...
Read more
Best Child Insurance Plans in India
A child insurance plan is a combination of savings and insurance, which help the individuals to plan for the...
Read more
Download the Policybazaar app
to manage all your insurance needs.