Should You Save Money for the Education of Your Children?

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Should You Save Money for the Education of Your
Children?
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• Joseph and his wife Nalini always wanted to give
  their daughter Natasha the very best in her life.
  From sending her to the best school (and college
  later on) to enrolling her in all her favourite
  extra-curricular activities, they never fell
  short of providing her with the best. However,
  when Joseph suddenly fell Ill when Natasha was
  just 10 years old, it was up to Nalini to run the
  house and also provide for their child. The
  expenses had to be curbed. However, there were no
  cuts in Natashas lifestyle. How was that
  possible? Well, thankfully the couple had started
  saving money for their child from the time she
  was three months old. They had a separate savings
  account for her and they also had a money back
  plan for her. A wise decision taken years ago
  paid off for the couple at the time of a need.
• If you too want to build a protective cushion
  around your child and give her nothing but the
  very best, start saving for her education right
  away. Read on to know exactly how you can go
  about it.

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• Saving money for your child
• There is no question about it you have to save
  for your childs education. Education costs are
  constantly rising and if you dont plan ahead, it
  will become very difficult for you to provide the
  best possible education for your child later on.
  So start saving early and build up a healthy
  corpus. There are various ways in which you can
  save for your childs education. They are
• Invest in a child plan This is the best way to
  save for your child. Child plans are effective
  insurance policies that not only build up a
  corpus for your childs future, it also insures
  your life and assures your child will be
  protected even if you die prematurely. You can
  even opt for a money back child plan and get
  financial assistance at specific intervals like
  your childs school admission, her college
  admission and her university admission. Such
  plans are long-term plans and so you can build up
  the corpus gradually without having to strain
  your finances all at once.

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• Open a bank account Many banks these days offer
  junior accounts. These accounts are joint savings
  accounts that you can open with your minor child.
  The child will also be a co-account holder. Not
  only do these accounts help you save money, they
  also help in making your child financially
  responsible from an early age. These accounts are
  also useful to bank the money the child receives
  in gifts, scholarships, etc to use in her later
  life. PPF PPF or Public Provident Fund is an
  excellent savings tool for your childs future.
  You can invest in small amounts and get high
  yields. PPF accounts also contribute towards tax
  savings, which is an added advantage. You can
  contribute up to ? 1.5 lacs annually. The money
  is locked in for 15 years after which your child
  can withdraw it to fund her higher education.

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• Why you must save for your childs education
• To understand this, let us take a look at the
  table below

Type of Course COST IN 2016 COST IN 2036
MBA  20 lacs  75 lacs
Medicine  1 lac  38 lacs
Law  5 lacs  10 lacs
Engineering  5 lacs  20 lacs
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• So as you can see, education costs are rising
  rapidly, much faster than the rate at which your
  income is rising! It therefore becomes absolutely
  essential for you to start saving for your
  childs future at the earliest. Life is also very
  uncertain and you never know what unforeseen
  incident can strike you in the near future. So be
  cautious and build up a corpus which can help
  your child to fulfil all her dreams in life.
  There are many options to choose from and you can
  definitely find a saving tool that would suit
  your pocket.
• Speak to your financial advisor and see what
  savings option suits you the best. Once you find
  a suitable option, go ahead and start saving.
  Tomorrow your child will be able to reap the
  beautiful benefits of the wise decision you take
  today.
• Resource From http//blog.easypolicy.com/save-mon
  ey-education-children/