7 Steps to Plan your Savings for Children's Education

7 STEPS TO PLAN YOUR SAVINGS FOR CHILDREN'S EDUCATION Ensure that nothing stands in their way, especially the ability to finance their EDUCATION. Children are always asked what do they want to be when they grow up. Child Education is the biggest goal of parents because of the tough competition and HIGH EXPENSES INVOLVED. Planning for Child Education is not a big task and you can do it yourself by showing some INTEREST AND EAGERNESS TO DO IT. ----- SEVEN STEPS TO DO YOUR CHILD'S EDUCATION PLANNING SET A TARGET AMOUNT IN TODAY'S TERM 21 SET A TARGET DATE The first step is to find out the target date for the chid education goal Determine how much does it cost in today's value for giving education to your child. All of us have different aspirations when it comes to cur chikd education, lke MBA, 'Engineering. MBBS & Software related courses are on our minds Take your own target tenure depending on your expectations and situ9tion Make sure you understand the D effect of inflation on our Money. ESTIMATE HOW MUCH YOUR CHILD'S EDUCATION WILL COST Find out how much amount you actually need in the end. $$$ 24 For this, you firet need to determine the rise in education cost per year. Education cost has been increasing at 10% per annum, which is higher than other cost increase. Estimate the return, which you can generate over your investments There is no point in investing in risky products, if you are not a risk taker. Investing for long-term, like 10+ yrs should take Equity route; as it has performed the best with maximum returns and with small risk. Calculate per month CONTRIBUTION You need to use this formula. C = [FV * r]/ [(1+r) * {(1+r) ^ t- 1}] Where C- contribution per month r=Rate of return you expect to generate on your returns t= tenure (It would be multiplied by 12 payments are monthly) FV - Future value of your goal (this is calculated in step 3. Manage and Make sure these costs are part of YOUR INSURANCE COVER MONITOR Always include the cost of child's education, while calculating your insurance Always keep a track of your investment plan for child's education and check tis performing requirements. This ensures that your child education costs are not affected by any unexpected eventualities in life. Make sure you know the exact amount you have accumulated and compare it with the amount you should have accumulated at that time. REMEMBER You have several products in market, which claim to be Child Plans. They are costly and complicated for most of the general investors Don't buy if you don't understand it Sources htpdinemben.ounenutal.cononeyanagement angsne-oome bamingl sa dren.comn dconmononadtonirdeen pgatnooney wite-ooloaing Presented By Prepared By moneytips SEA R CH 3 w A personal inance commenity