Education inflation is the maximum these days. At college or school reunion functions across the country, a common and familiar topic of conversation is how the cost of education has increased manifold over the years. With families slowly becoming more and more nuclear, help from relatives is unheard of nowadays. Also, the associated costs of education like school books, travelling to & from school, uniforms etc have shot up. If savings are not done early then by the time kids grow up, the costs of education would make it very difficult to provide an MBA, MBBS or an engineering degree.
Some financial tips for parents
In this regard, here are some financial tips for parents so that they can give their kids the education that they always aspire to.
- Start saving early. Put away some of your savings into long-term investments that will give you funds when you require them the most. PPF and NSC’s have a lock-in period of 9-10 years. These investments are reliable and provide tax benefits
- Invest in educational insurance policies when your kid is in his primary grades so that when he grows old enough to join a University, you have the funds available to send him to the finest universities.
- Buy a Term Insurance Plan which will ensure that in case an unfortunate event occurs a term plan can help your dependents cope up with the financial loss. A Term Plan is a simple, traditional policy that gives your family a fixed payout in case of your demise during the policy tenure.
- A scenario worse than dying, in certain cases, can be you falling critically ill; such that you are unable to work for some time and face a loss of income. Buying a critical illness plan, when you are in good health, will ensure that whatever you have saved for your children’s education is not impacted.
- With proper financial planning, you can give your child the dream education that he/she deserves and desires. Invest early so that you can reap the benefits of compounding.