How should you plan for your children’s education?

How should you plan for your childrens educationHow should you plan for your children's education?


My children started growing up and are in high school now. While education cost would play a key role, I started analyzing how I can plan better education for my children. In the process, I have come up a few experiences, thoughts and ideas. How should you plan for your children's education? Apart from money, what other things you should consider when you are planning for your child's education.

How should you plan for your children's education?


1) Check what your children want to become


You would have certain ambitions to make your children to do an MBA or Doctor or MS in foreign. But I feel one should really check what our children want to become. This would help you to reduce the gap between Child dream vs parents' ambition. Based on your day to day interaction with your children, you can easily make out their interests. Recently, Axis Mutual Fund has created an interesting platform, “Do your homework”, where parents can take steps in finding out if they and their children are on same page when it come to their future.

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2) Identify key strengths of your children


While every child may not be perfect in all areas like education, sports, etc., I feel parents should be able to identify the key strengths about your children. While basic education is a key, if he is interested in specific sports or games, you should always encourage them. This would motivate children.

3) Identify the future educational costs


When you identify children’s strength and their dreams, you would be able to plan better for the child's education. You need to go one more step ahead and know how much education cost it would be now and relevant future costs for similar education. E.g. If you want your children to do MBA in a foreign university, you would know the current expected cost and you would be able to estimate approx cost when your child is ready to take up that course in the foreign country. I was going through Axis Mutual Fund #DoYourHomework initiative. This program is basically for parents and their children which would be able to identify what their child is interested in, what education they need to provide for their children and approximate current and future cost of such education.

4) Invest in a good mutual fund


While there are several investment options for children's education, I would prefer to invest in a mutual fund. Investing small amounts in large cap, mid-cap/small-cap and balanced funds through SIP for 10 to 15 years would help your money to grow. This would help in achieving the educational expenses that are required in future for your child.

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Suresh
How should you plan for your children's education

Suresh KP

3 comments

  1. Pls advise reg my duaghter's education plan. She is now 9 yrs young & I want to make a lumpsome  investement for an assured or non assured lumpsum return when she becomes 18 years young. Tks in advance.

  2. go for MF SIP 450000 per year i.e; 450000/12 monthly basis
    and remaining 150000 in Sukanya … will also get tax benefits

  3. Dear Mr. Suresh,

    Am a NRI , having two daughters( 5 years & 2 Years). Please advice which one is better scheme -sukanya samriddhi / SIP Mutual Funds. I can invest 50,000 every month.

    regards,

    Johnson , Qatar

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