Home Discover Journals A Financial Planning Guide for Your Child’s Education

A Financial Planning Guide for Your Child’s Education

By Finserv MARKETS - Apr 22,2019
Views Icon229 Views 0 0 Comments

ULIP

As a parent, you want your children to have the best of everything, especially education. Because a good education is the only thing that will ensure a secure future for your children. However, one cannot ignore the fact that the cost of quality education is increasing by the day. Gone are the days when state universities would provide education at subsidized rates. With the increase in the number of private universities, the cost of education has shot up considerably. Hence, if you don’t start planning for your children’s education well in advance, you may not be able to gather enough funds. Here’s simple 3-point financial planning path for your children’s education which will ensure their bright future:

Prepare a Financial Roadmap

Several leading financial institutions, have conducted various studies. The key takeaway of these surveys was that most Indian parents don’t plan for their child’s education, as a result of which they fail to secure the required capital for their children to achieve their dreams. Hence, it is important to create a financial roadmap for all important financial goals in your life. Just list down your major financial goals such as buying property, a car, your child’s education etc. and estimate the amount of money required to fulfil them.

Factor in Inflation

Goals cannot be achieved unless they are converted into an action plan. While it’s easy to set financial goals, it is also important to be realistic. Most people fail to consider inflation as a factor while planning for future financial goals. However, this seemingly small error is bound to cost you dearly in the long run. This is because, an amount which might seem perfectly reasonable today might be woefully inadequate in ten years’ time. Hence if you plan your financial goals by factoring in inflation, you will be able to avoid scenarios in which you have to unwisely use your retirement savings or opt for super-expensive education loans.

Invest Wisely

Making the right investments is the key to achieving your financial goals. However, there are innumerable investment options available in the market and choosing the right one can be confusing. If you have a time span of five years or more to plan for your child’s education, you should consider investing in market-related products, as you stand to benefit greatly in the long run. The best way to plan for your children’s future is by investing in child education plans. Finserv MARKETS brings you a ULIP based child plan – Bajaj Allianz Goal Assure that offers you the dual benefits of life insurance and an investment plan. Besides potentially higher returns on investments, you can also enjoy additional benefits associated with unit linked insurance plans such as zero premium allocation charges, high returns and flexible asset management.

Bearing these three points in mind will help you plan for your child’s education successfully. Invest in a child education plan and take the first step towards securing a bright future for your child!

Also read in detail about the ULIP tax benefits you can avail with the child plans available on our platform.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!

Comments

Connect with Us
Connect with Us

Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522