The world has changed a lot now compared to the past. In the old days opportunities were limited. It would have been a little harder to achieve if they had been achieved. But, now the competition has increased. In the context of globalization .. many new changes are visible. The possibilities are twofold. These can be further enhanced by having children now. In order to prepare them for this .. parents have to be financially ready ..
According to a survey conducted a few years ago, the cost of education has increased by almost 175 per cent from basic level to post-graduation. At the same time, the cost of vocational and technical education increased by almost 96 percent. It is difficult to imagine the extent to which the cost of education has increased in recent times. Education inflation in our country is generally estimated to be around 10-12 per cent. Even if it is not so high .. even if it is calculated at the rate of at least 6-8 per cent .. the MBA fee which is currently Rs. 6 lakhs will reach Rs. 15 lakhs after 15 years. Engineering fees of Rs 10 lakh are likely to go up to Rs 30 lakh after 15 years. This is not just in India .. the whole world is like this. So, as parents, we have to take care of this and make sure that our children do not face financial difficulties in their studies.
Get started quickly.
Let there be no financial goal in life .. Recognize it early .. Start making the necessary investments as soon as possible. Only then will security for the future emerge. The same principle applies to children’s education. Children only say their goals. Do parents have to make the necessary arrangements? Calculate how much it will take to complete the education they want. Current cost .. Add inflation to it and calculate the correct amount. Then start investing in this. The mistake that can easily get your claim denied is to fail. This can make it difficult to get the right amount of time on admission to college. To prevent such a situation .. Children should be converted into an investment for them at an early age.
With government guarantee ..
If you have a girl and she is under ten .. Choose Sukanya Samridhi Yojana. The scheme is unique in that it is highly favorable in terms of investment and has a government guarantee. The scheme can be started with just Rs.250. After that you can deposit in multiples of Rs.50. All you have to do is deposit Rs.250 per year to prevent your account from being canceled. Another special feature of this is that you will not be able to withdraw money from it until your girl is 18 years old. As a result, it is not advisable to withdraw money from this account from time to time. The girl can invest in this scheme till she reaches the age of 21 years. Partial withdrawal of investment is allowed only in certain special circumstances after 5 years of opening the account. The interest rate is usually slightly higher than PPF. There is no tax on interest earned.
Don’t forget insurance ..
If anything unfortunate happens to the parents before the children finish their studies …. there may be implications for the future of the children. Sometimes they have to continue their studies contrary to the intended goal. Children are financially dependent on their parents. Therefore, they must be provided with adequate financial security for the future. The earning family adult must take out life insurance at least 15 times his or her annual income. When new members of the family arrive .. even if the income increases .. these insurance requirements should be reviewed once.
To be sent abroad ..
Education has now become a common topic in developed countries. Many people have this desire. If you want to go abroad after another 10-15 years .. you need to make arrangements to provide the necessary funding for it now. For example, if you want to study abroad for Rs 20 lakh now .. 15 years later it is estimated that it will cost up to Rs 50 lakh.
For this you need to choose Diversified Investment Plans. Investment is safe to some extent .. should be diverted to more lucrative schemes. The Nifty 50 Index funds and guaranteed insurance policies can be considered. Do not forget that it is possible to deposit the appropriate amount for the financial goal only when the investment continues for a long time.
Teach thrift lessons ..
Children need to be taught from an early age the value of money and the need to save and invest it. Only then, once they get to a stage can they effectively manage the money on their own. Give a fixed amount per month and encourage it to budget properly and spend. Introduce about income tax. Joining and earning a job .. even if you are away .. these good habits that you teach will take them to a higher level financially.