According to the survey, out of 100, 70 percent of mothers are admiringly involved in their child's education, and 50 percent of a woman's key driver for investment is a child's education. If you also intend to enroll your child in a reputable school in India or abroad, the first plan to achieve this goal is Financial Planning.

You can accomplish your goal of giving your child the best education by managing your money and effective planning. Here are the steps are given below to follow for Financial Planning.

The existing cost of education

The first step is to decide your goal. You need to determine if you are planning for your child's undergraduate course, post-graduate course, or school fees. You should figure out if you plan to send your child abroad or to the top schools in India. The next thing to be considered is which course interests your child the most. By deciding all these things, you can estimate the current cost of education.

Inflation rate

The inflation rate is the second and one of the essential steps in financial planning. Inflation refers to an increase in the cost of goods and services. This step means that the cost of education will not be the same as it is today. The rise in the price of education can easily affect your goal amount. It is always necessary to account for inflation of about 8 to 10 percent per annum while planning for your child's education.



Child's current age and admission age

This point will help every parent to determine the time of their goal. If you make earlier plans for your child's education, you will automatically have more time for your money to grow. For example, if your child is three years old and you plan for an undergraduate program at the age of 20 years. Then, the time of the investment will be 20 years - 3 years = 17 years.



Investment choices and expected rate of return

To decide this thing, your goal and time of investment play a crucial role. If your plan is for less than three years, you can pick various investment options like FDs, RDs, Debt Mutual Funds, etc. If your goal is for the long term or over three years, you can choose many long-term investment opportunities such as equity ETFs, mutual funds, equity mutual funds, gold bonds, etc.

Amount of your investment

You can use any calculator available to plan the amount of investment you will need in order to accomplish your goal, the dream of providing your child with the best education. To achieve this goal, you can invest a fixed amount every month like an installment of SIP, or you can make a lump-sum investment if you have funds. You can turn your dreams into reality even with regular and small investments.

Final words

You can make changes in your investment plans if there are changes in your goals. For example, you were planning for an undergraduate program abroad, but your child wants to go abroad for a postgraduate course after completing the undergraduate course in India. In this case, you will have to determine the additional amount required to achieve your goal.

You should always keep a track of your plan to check whether you are getting closer to achieving your goal. For better outcomes, you should always start early and enjoy the power of compounding.