“We may not be able to prepare the future for our children, but we can at least prepare our children for the future.” ― Franklin D. Roosevelt
Planning for your child’s future education is difficult than it used to be a few decades ago. Presently, higher education has become incredibly specialized and nuanced, but it requires much more involvement and investment than before. A child’s higher education includes critical landmarks like the choice of field in higher secondary school, graduation, and post-graduation.
You cannot plan your child’s career direction for when he gets into higher education, but you can certainly prepare yourself to be able to provide the best possible education. Quality education is the best gift you can provide as a parent. This is how you can systematically plan for your child’s educational milestones:
It is best to prepare for your child’s education from a very early stage. The expense of your child’s education will be relatively low when he/she is in pre-school, but it will increase during higher secondary education due to requirement of extra tuition classes.
Many parents prefer for their children to switch to a better school or opt for advanced coaching during higher-secondary education. Higher secondary education is the foundation of your child’s career direction. Due to that, pre-school phase of your child’s education is the best time to plan for higher spending requirement during higher education.
College Education can be a significant expense depending on the field of education and college of choice. If your child wants to become a surgeon or a scientist in the future, don’t let their dreams be crushed due to lack of funds.
College expenses for specialized fields might cost INR 20-30 Lakhs right now, but it will increase further when your child has grown up. Due to rising costs of education, you should invest at least 15 lakhs on a long-term fixed deposit during primary school to earn an interest of about INR 7,00,000.
Smart parents are the ones that plan ahead for their child’s future and can provide the best possible opportunities. If your child has abilities and aspiration to seek the best means of education, you should have adequate funds to enable it.
The average cost of education in countries like Canada or USA costs around INR 15 to 25 Lakhs. If you invest in a FD scheme of INR 20 Lakhs for 5 years, then you can earn an interest of up to INR 10 Lakhs.
The government of India has introduced benefits of tax deductions for parents investing in their child’s education. Under Section 80C, you can claim a tax deduction of up to INR 1.5 Lakhs for education expenses for maximum two children. If you invest in tax-saver Fixed Deposits, you can claim the full amount of investment as tax deduction u/s 80C of Income Tax Act.
Fixed deposits are the safest form of investment to protect your child’s dreams. However, you should opt for an FD plan which has the highest Fixed Deposit Interest Rate. Bajaj Finance provides you an interest rate of up to 8.40% with added benefits with flexible tenure options to help you manage different fixed deposit investments. Additionally, you can also claim tax benefits every year while investing for your child’s education and conserve funds for any additional expense. Your child will never have to look behind when it comes to a bright future.