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.
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.
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