Are the rising costs of education bothering you? Do you worry more about your child’s educational expenses more than anything else? While education can be an irreplaceable investment in the lives of our children, it has also become a major reason for worry due to the escalating cost of financial burden it brings with it.
Common career aspirations of children like MBA, MBBS or engineering have already seen the face of price rise as the cost of doing an MBA from IIM has increased from Rs. 3.16 Lakh in 2003 to Rs. 12.5 Lakh in 2009, an inflation of nearly 22%. Even if we take a moderate inflation rate of 11%, an MBA could cost over Rs. 22 Lakh in the next 10 years.
With these rising educational costs, it is important for parents to go a step ahead and be smart with their savings. It is integral to invest funds systematically in an education investment plan to cushion your child’s expenses at important educational milestones.
Do not get yourself into a debt trap by taking a personal loan because of your late planning. A loan can put you into a lot of trouble if you do not start your savings from now to get a big return for your child’s future
Mutual funds can also be a good choice after thorough revision of the offer document provided by the organization. Other methods of saving can be fixed deposits at banks or post offices, buying precious metals, jewelry and national savings certificates.
Thus, with subsequent planning and investing, after consideration of risk options, can help parents build a proper educational plan for their child. Awareness of the market along with sound investments can help secure your child’s educational aspirations with no problem at all!