Save for Child’s Education: Get his/her degree without drowning in Debt & Loans

Every parent wants to save for their child’s bright future. In India, child education is one of the biggest expenses. We live in a country, where education is getting super expensive with every passing year. As per the research by NSS, the education expense saw three times hike this 5-7 year.

The cost of education expenditure increased to 226% for the year 2014 from 157% in the year 2008. The average expenditure of the student in a private school in the urban area is INR 10,000. The donation alone in Delhi ranges from INR 3 Lakhs to 8 Lakhs for primary classes and it is even higher for graduate-level education

Proper management of child education is one of the biggest tasks for every parent. Many parents prefer to start saving for child education right from the birth of their new-born, but many times, they fail to access the right investment plan and end up drowning in huge loans and debt.

How To Save for Child’s Education

  1.  Smart Investing

    It is always advisable to start saving early for your child’s education as early as from their 1st birthday. So, by the time when they turn 18, there is enough funding for the child to pursue their dream. Incorporate the 3 Ps of smart investing for your child’s future. 3 P’s includes Plan, Prepare and Persist to yield long-term benefits.

  • Planning – Invest in through SIP in mutual funds, equity, etc it will inculcate the habit of     routine saving, you can invest in the right plans based on your risk tolerance, timeline, and financial goals. Make sure you calculate          the cost of inflation because down the line 10 years the educational    charges will be high.
  • Preparation – Get in touch with a financial advisor to plan and build your fiancé as per your goals and long-term needs.
  • Persistence – Make the most of market high and market lows to reap long-term benefits on your financial planning. Make the best investment with SIP. The SIP Calculator will help you to make a better financial decision in a particular time frame for your child’s education.
  1. Management of Time

Plan your finance early and in a better way. Even if you have started a bit late, with smart investment decisions you can catch up by increasing the investment amount. The L&T Mutual Fund Children Education Calculator is an interactive page where parents can fill in details of their child and estimate the educational expense. They can estimate monthly investment amounts to prepare in advance for their child’s higher education without any debts or loans.

  1. Money Management By Professional

If you are planning to invest in Mutual Funds, the money is managed by an expert fund manager. The websites of mutual funds or distributors of mutual fund provides complete information to various investment plans and assists you with the right information. When you invest money in mutual funds, you can aim to reap long-term benefits even from a small investment. The best of it, the investments in mutual funds has some tax benefits, based on current tax laws.

Always have the habit of reading the scheme related documents before investing to understand the scheme type, investment patterns and the risk factors associated with particular investments and consult your financial advisor to understand the implication of any investment

Investing through Mutual Funds

Investing through Mutual Funds

The mutual funds pool money from a group of investors and that capital is invested into different securities. Mutual Fund is one of the most popular investment choices because the potential benefits are huge. With mutual funds, you can start with just INR 500, you can diversify the stocks and the best part is you don’t need to open a DEMAT account to get started.

With mutual funds, you can invest in a lump sum or as SIP to avail best long-term returns. Investment in Equity Linked Saving Schemes (ELSS) is also ideal for tax saving which aim to offers higher returns and the lock-in period is short i.e. 3 years. You can checkout L&T Mutual Fund; they have various plans which offer systematic investment plans too. This financial funding solution is one of the perfect methods to use for the child’s education.

While planning the child’s education, have a clear plan. The huge difference in current education cost and future cost can put you in huge debt and loan. Having a clear saving plan and an investment plan, you can secure your child’s future. Make a smart investment choice like L&T Mutual Fund for your child’s bright future.

 

Disclaimer: This information is for general information only and does not have regard to the particular needs of any specific person who may receive this information. L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates; does not guarantee/indicate any returns/and shall not be held liable for any loss, expenses, charges incurred by the recipient. The recipient should consult their legal, tax and financial advisors before investing. The recipient of this information should understand that statements made herein regarding future prospects may not be realized or achieved.

 

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

 

 

 

 

 

 

 

Hema Gayatri

Zenith Buzz Editor

15 thoughts on “Save for Child’s Education: Get his/her degree without drowning in Debt & Loans

  • May 4, 2021 at 4:19 pm
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    Today kids education is the main concern for parents. having a proper plan in place is must. It takes away a big burden for parents shoulder.

    Reply
  • May 6, 2021 at 5:41 pm
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    Yes with over competition in every field, it is very important for parents to plan ahead for their child’s education. L&T mutual funds sounds like a great option to reduce child’s future education planning, will explore more about it for sure. thanks for sharing dear.

    Reply
  • May 6, 2021 at 8:13 pm
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    Oh this seems to be a good way to save for our children’s future. But first I’m thinking of saving for my retirement. Need to retire soon.

    Reply
  • May 7, 2021 at 2:38 pm
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    It’s really important to focus on kids education and planning out before hand everything thank you for sharing the complete details definitely going to save the post.

    Reply
  • May 8, 2021 at 10:19 am
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    These are very practical and sound tips. My husband and I also invest in my son’s name for his future – particularly for his higher education. Informative and helpful post!

    Reply
  • May 8, 2021 at 2:03 pm
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    I agree children’s education is getting rocket high and only proper planning can sail us through. You have given some great suggestions. Thanks a lot for such an insightful post.

    Reply
  • May 8, 2021 at 3:42 pm
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    Kids education these days is so expensive and plannig well in advance is the way to go. It will always help us in the future.

    Reply
  • May 8, 2021 at 7:06 pm
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    We too have been saving for our kids future educational needs for a long time now and I too feel that mutual funds are a great option to invest in. We too have done the same.

    Reply
  • May 8, 2021 at 8:17 pm
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    Yes it is important for parents to save for their child’s education. I feel SIP and Mutual funds can both be a great combination for giving benefit according to the need.

    Reply
  • May 8, 2021 at 9:13 pm
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    I agree parents need to plan very well in advance to ensure that they can take care of the education bills which are increasing annually. MF are a great option for building up savings.

    Reply
  • May 9, 2021 at 2:17 am
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    Saving for child education is what every parent concern and they do it effortlessly for an entire life. Good to know about the SIP calculator and the mutual funds in detail.

    Reply
  • May 9, 2021 at 3:34 am
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    Investing through mutual fund for child’s education is a new thought that has been widely accepted. We can hope that this will relieve us of the future financial burdens.

    Reply
  • May 9, 2021 at 4:42 am
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    Given the current situation and rising education costs its indeed important to plan the education well and save as much money as possible. even we invest in mutual funds.

    Reply
  • May 9, 2021 at 5:33 am
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    With mounting education expenses it is prudent to invest money for our children. These seem like good options. Will explore more.

    Reply
  • May 9, 2021 at 1:09 pm
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    Thank you for sharing this information. I think it’s important of us to take right decisions at the right time while being smart about the choice. I’m bookmarking your article for further reference. Thanks.

    Reply

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