Child Plan Calculator

What Is a Child Plan Calculator?

A child plan calculator is an online tool specifically designed to provide an idea of the fund they would require to fulfil future life goals of their children. 

Creating a strong financial backup for your children becomes hassle-free with the use of a child savings plan calculator. 

You can estimate the maturity amount of your policy. This way, you can judge whether the sum generated by your child education plan is sufficient to fulfil the future needs of your ward.

Why Is It Important To Use Child Plan Calculator?

Long-term goals like a child's higher education or marriage require a substantial amount of money with proper financial planning. With the help of a child savings plan calculator, an individual can estimate the monthly investment they will require to build the desired corpus. 

Here are some of the reasons to consider using a child plan calculator:

1. Helps fulfil specific goals

   To fulfil the needs of your child wants to pursue any specific career or study abroad, you will need to plan and set aside a specific sum. 

   A child education plan calculator helps you evaluate and analyse the amount of money needed to fulfil such goals.

2. Helps plan monthly finance

   Before investing in a child insurance plan, it is important to understand the financial requirements and budgeting. 

   With the help of a child plan calculator, you can plan your monthly finances properly and create a strong budget for specific needs of your family. 

3. Inflation check

   A child plan calculator also considers important factors like inflation rise, annual income; the age of the policyholder, etc. to estimate the size of funds required. 

   The inflation rate deteriorates the effective maturity benefits required to secure the child's financial future. Thus, it becomes imperative to consider the inflation rate while doing the calculation.

4. Facilitates informed decision-making

   Using a child education plan calculator allows you to make informed decisions about the type and amount of investment required to meet your child's future expenses. 

   You can compare different investment options, and choose the best one that suits your financial goals, and risk appetite.

5. Helps track progress 

   A child plan calculator allows you to track the progress of your investments over time. You can see how your investments are performing, whether you are on track to meet your goals and make adjustments as needed.

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How a Child Education Plan Calculator Works?

Let us learn the working of a child plan calculator from the list mentioned below:

• Input your child's age: determines the time horizon for your investments

• Estimate the future expenses: Helps you to estimate the future expenses you expect to incur for your child, such as education, marriage, or other significant life events

• Determine the time horizon: Based on your child's age and the estimated future expenses

• Determine the investment amount: Calculator will determine the amount of money you need to save and invest each month to meet your child's future expenses

• Compare investment options: Allows to compare different investment options, such as mutual funds, savings accounts, or insurance plans, based on their expected returns and risk levels

• Make adjustments: You can adjust your investment amount or interest rate based on your financial goals and risk appetite.

How To Use Child Plan Calculator?

Follow the below-mentioned few simple steps to use a child savings plan calculator:

Step 1: Visit Policybazaar Child Plan Calculator

Step 2: Enter the following details in the Child Savings Plan Calculator:

• Child's Name

• Age of the Child

Step 3: Click on the “Submit” button

Step 4: Select the future career goals of your child among the following:

• MBA

• Doctor

• Engineer

• Others

Step 5: Select the type of college/ university you want your child to study:

• Premier Colleges

• Private Colleges

• Study Abroad

Step 6: The child plan will give you the following details upon calculation:

• Education fee

• Inflation rate per year

• Estimated Amount of Funds in Future (required by the time your child wants to go for higher studies)

• Monthly Premium Amount Need to Invest (sum required to reach the education goals)

Benefits of Using a Child Plan Calculator

Here are some of the key benefits of a child education plan calculator:

• Accurately estimates the amount of money you need to invest, considering all the involved factors

• Allows you to create a customized plan that meets your child's specific financial needs

• Helps you to compare different investment options to your financial goals and risk appetite

• Can save you time by doing complex calculations for you

• allows you to track the performance, adjustments, and progress of your investments over time

In Brief

A child plan calculator allows you to get accurate estimates of the amount of money you need to invest, customize the investment plans, and save time in tracking their progress. 

By using this online calculator, a parent can ensure that they are making informed investment decisions and are on track to meet their child's financial needs in the future.