Cost of Child Education

By -


We always dream to give best education to our child but do we really think about growing cost of child education? We want a child to become doctor or engineer but do we really plan for this? As per me saving for child education is the most important goal for parents. Other goals like buying car or buying home can be compromised, but we cannot compromise our child education.

When it comes to child education planning majority of people rely on child education plan which ends up paying them peanut type returns. In this post, I will be highlighting details of growing child education cost and will be giving education planning calculator.

Follow steps are given below to plan your child education.

1 Set Target Year

The first step is to find out target year for education expense. It is very easy to find out this if your child age is 1 year then he will enter in graduation year after 18 years. If he is likely to do MBA after graduation you need to consider target age 21-22 year for MBA.

2 Find Current Education Cost

The second step is to find current education cost. Arriving at current education cost is somehow difficult. First you need to decide that which educational institute you are planning for your child. You have various options like Regional Engineering colleges, IIT etc for engineering. You need to find out current education cost applicable to that course in the specific institute.

3 Find Future Education Cost

The third step is to find future education cost. Inflation rate comes in to picture at this stage. You can find future education cost by using simple excel formula of FV.

4 Find Monthly Investment Amount

In order to find out monthly investment amount required you can use simple excel formula PMT. PMT formula calculates constant payment on constant interest rates.

5 Invest in Suitable Investment Option

Once you are done with all above step you need to find out investment option which can generate a return as per your expectation. You can select good mutual funds which can generate a return in the range of 12-15%.



Comments

Post a Comment

Popular posts from this blog

Which term insurance plan is best for you?

By -
  Which term insurance plan is best for you? In today's world, where things can be uncertain, making sure your family has enough money for the future is really important. That's where term insurance plans come in handy. They're an easy and not-too-expensive way to make sure your loved ones have enough money if something happens to you. If you live in Nagpur, it's especially important to pick the right term insurance plan, and having a trustworthy insurance agent or advisor in Nagpur can really help. In this article, we'll talk about the different types of term insurance plans available and help you figure out which one might be the best for your situation. Level Term Insurance: One of the simplest and most widely chosen types is level term insurance. With this plan, you pay a fixed amount of money for a certain period, like 10, 15, 20, or 30 years. Many people in Nagpur like this type because it's easy to understand. If you happen to pa
Read more

Six sip secrets you should know.

By -
  Six sip secrets you should know. Mutual fund investing has long been regarded as one of the best strategies for long-term wealth growth. Like many other Indian cities, Nagpur is seeing an increase in the number of people using mutual funds to reach their financial objectives. By using a systematic investment plan (SIP), you can invest in mutual funds in one of the most well-liked and convenient ways possible. However, there are a few SIP secrets that, when understood and used, can drastically affect the results of your mutual funds. We'll go into these six SIP secrets in this blog and examine how they can affect your financial journey, with a particular emphasis on Nagpur and the significance of a mutual fund advisor in Nagpur. Consistency is key - Systematic Investment Plans, or SIPs, encourage investors to make consistent, recurring investments. This methodical strategy makes sure that you invest a set amount of money at regular intervals, usually once a mo
Read more

Types of Systematic Investment Plans (SIPs)

By -
  Types of Systematic Investment Plans (SIPs) A systematic investment plan (SIP) is a common way for people to invest in mutual funds through a system that enables them to make regular, fixed-amount investments at predefined intervals. SIPs offer a disciplined approach to investing and come in a variety of forms to accommodate differing risk profiles and investment objectives. Individuals have access to a wide variety of SIP alternatives offered by various mutual fund firms in Nagpur, a city in Maharashtra, India. Let's examine some of the various SIPs that Nagpur has to offer. Equity SIPs: These investments in equity mutual funds, which invest largely in company stocks, are known as equity SIPs. These SIPs are appropriate for people who have a lengthy investing horizon and a higher risk tolerance. While equity SIPs may offer larger returns, they are also vulnerable to market volatility. Debt SIPs: Debt SIPs invest in debt mutual funds, which invest largely in fixed-income se
Read more