Education is a major expense as school and college fees are skyrocketing. Gone are the days when you could manage your child’s school and college fees with your monthly income. You need to be well prepared in advance to be able to pay for them. There are a number of child education plans that you can choose from, which not only helps you build up a corpus but is also insured.
Plan your kid’s education expense well in advance. Setup a kid’s education goal so that you can maximize the opportunity to make your money do your work for you. Start investing early to enjoy the benefits of compounding.
A variety of options are available to choose from for Under Graduation, Post Graduation, MBA either in India or Foreign.
Illustration for kids’ education goal
Below is a scenario build using the goal for an IVY League Under Graduation.
- Age: 33
- Gender: Male
- Marital Status: Married + Kids
- Annual Income : 20,00,000
- Spouse Employment: Not working
If you’re planning to educate your children in one of the top colleges in the US. It costs Rs.30,60,000 per year for a 4-year course today.
With just a monthly investment of Rs 51,500 for a period of 16 years, you can aim to educate your child in IVY League colleges without having to worry about the sky-rocketing fees.
Here’s how a Balance Portfolio looks like:
A quick snapshot of returns when compared to an FD investment helps you understand how well your Portfolio is performing.
Saving up for your kid’s education is a big decision and you would be cutting back on spending your wealth today to achieve this and you should be sure of what you’re doing before jumping in.
All said, do not delay taking this decision. Let me help you take the right decision. I’ve created this table below to show what it would cost if you delay. Future cost is based on today’s cost, an annual increase in fees and dollar inflation.
Nicholas A. Ferroni said “Education is not the problem, it’s the solution. Education is not an expense, it’s an investment.” Don’t make your child lose out on good opportunities only because you can’t afford it then. “Investment in knowledge pays the best interest” – Benjamin Franklin. Invest now, for you never know one day their quotes would be noteworthy like the ones we use today.