5 Easy Steps to make a planning for your Child's Education

1
5 Easy steps to make a planning for your childs
Education

• A guide For Child Education Planning by
  Wealthcare India

Contact us 91-9582012572 Email ID
sales_at_wealthcareindia.com Website
www.wealthcareindia.com
2
One of the main things that parents are worried
about is their childs education. Parents start
saving for their little ones future when their
children are tiny tots. The cost of education
these days is very high. If you want your
children to get the best education then you must
have a savings plan for the same. Here are some
tips for child education planning
3
Decide on a date

Here you have to keep in mind your childs
education goal. That is after higher secondary
what course he or she might opt for. Like if it
is a technical course then it will be 4 more
years after the higher secondary. Based on this
you need to decide on the target date which will
depend on what exactly your child might pursue in
the future.
4
The amount that needs to be invested


Next you need to decide the amount that you may
have to spend on your childs education. You need
to keep in mind that professional courses like
MBA or medicine or engineering is going to cost
more. Your child will not take up the
professional course tomorrow but it will be after
a few years. So you need to keep the inflation
rate in mind when you decide on the amount that
you might have to invest in the future.
5
Keeping inflation in mind


As mentioned earlier you need to keep in mind
that the cost of education will increase in the
future. It is important that you keep this factor
in mind and then decide on the amount that you
will need few years down the line for your
childs education. Suppose if today a particular
course is costing 10 lacs then after say about 10
years or so it may cost 15 or even 20 lacs.
6
Returns from the investments will be the key


So you have decided on the target day and the
investment amount that you will need. Now comes
the most important point. That is planning how
you will get this target amount at the right
time. This is where systematic investments will
be important.

Now the investments that you make will depend on
your knowledge about the market and different
types of investment plans and the amount of risk
that you are willing to take. If you are not
willing to take much risk then you must opt for
balanced funds. Here you can expect returns of
around 10. If you have no problem in taking more
risk then you must opt for products like Mutual
funds, equity etc. The risk involved is higher
but the returns that you get will also be higher.
You can expect returns of around 14.
7
Your monthly contribution


Now next you need to decide how much you are
willing to invest every month. Your monthly
contribution will help you get closer to your
ultimate goal.




Thank You