Child Future Planning

A Child without Education is a bird without wings -Tibetian proverb. So to make your child fly ,one should start planning his / her Education .Start planning your child's future. The cost of education in India is increasing at a fast pace. From primary to secondary to higher education, parents are increasingly finding it difficult to meet the growing fee structure and other costs associated with education . According to rough estimates, on an annual basis the education inflation is about 10-12 percent. Even by conservative estimate, if education cost inflation of 6 per cent a year is considered, then an engineering course that costs Rs 8 lakh at present will cost around Rs 20 lakh after 16 years. Similarly, an MBA course that costs around Rs 15 lakh would cost around Rs 50 lakh after 21 years.

CHILD MARRIAGE PLANNING While planning for your child's needs, it always pays to start early. This is because if you start saving and invest early, it will give you a larger time horizon to meet the goal and even build a bigger corpus. So, in order to fulfill your child dream of getting married ,Start saving and begin investing as early as possible ,so that you do not get burdened with the loans at the age of 50. Plan you future along with them NOW ! Mr Patel has a daughter aged 3. He wants to create a corpus for his daughter in 25 years.Currently, Mr Patel plans to spend Rs 50 Lakhs on her marriage if it was happening today. So, let's ascertain how much he needs to save for his daughter's marriage every month to get her married after 25 years. Assuming an inflation rate of 6%, cost of Marriage after 25 years would be roughly 2.15 Crore. To achieve the same, he will be required to make investments worth Rs 12,500/- every month (expected return of 12% per annum).

COST OF DELAY

If Mr Patel delays this investment, and starts to invest for his daughter's marriage after 5 years from now, he would need to invest almost double, ie. Rs 23,000/- per month. Hence you see, the earlier you start investing, the less stressful it will be for you to achieve your goals.