Gone are those days when parents were free from the thought of planning for their child's education or the least they thought was about higher education. But, the trend is fast changing as now parents have to save for not just higher education but primary education as well.
Why there is a need
The classrooms have changed where technology has replaced conventional methods. That translates into higher education fee for a child in his school level alone. If the data is to be believed then an annual education cost of a primary student in a reputed school is equal to the total cost incurred on higher education earlier. It is estimated that MBA fee of Rs. 15 lakh now will cost Rs. 60 lakh in next 10 years.
In such changing times, the only way to secure a child's future is to make provision for primary education. Parents should consider saving for their child's education right from the period when a child is born. Starting savings so early will not put pressure on monthly budget and will also allow one to reach target corpus by the time child is enrolled in school. Parents could utilize tools available online to compute the future requirement of corpus and break it into a Systematic Investment Plan (SIP).
Life and health cover
Parents should take adequate health and life cover to ensure that their child's education is not put off track during difficult times. In a case of unfortunate event, parents could ensure that their child receives the due financial care.
A child's education term ranges between 20-25 years, which is a long term. Hence, parents should opt SIP route for investing their monthly savings and maintain a discipline. Procrastinating investment will only return setback and thus, timing is crucial when saving for a child's education.