Traditional career options are taking a backseat and with the advancement in the education field, costs are rising fast. Your kids may have dreams different than what you have for them and the costs may also differ. While planning for your kids' future, don't assume that your kids will opt for a career that you want them to.
Today paying for higher education also includes cost of boarding & lodging, travelling, buying gadgets etc., in addition to tuition fee. So make provisions for these costs as well.
While preparing a financial plan for your kids' higher education, assess the current cost that you think you would have spent had they opted for a career today (don't be defensive as you don't know what they might choose) and estimate future costs for it (tentative inflation 10%). Don't randomly assume a future cost and plan for it.
If your kids are young and there's 10-15 years or more for their higher education to start, invest in diversified equity funds.If you have 5-10 years, go for a balanced funds. And if you have less than five years, park your funds in debt-based assets.
The best way to save for your kids' higher education or marriage is to do goal-based SIPs. Also increase your SIP value every year as you earn more.
Higher education years are the real make or break phase for your children. Take the right step to make sure their dreams are not just dreams.
We should be careful about insurance products with the name child plan. Nomenclature is the way manufacturers sell products.Make your own plan for your child.
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