Making sure that your child gets a good education is becoming more expensive by the day! If you don’t start planning well from the very start, it might burden you tremendously later. As parents, it’s one of your primary responsibilities to ensure that your child’s future is secure—education-wise and financially.
Your other responsibility is to make your child understand the importance of saving right so that they become capable of bearing the burden of an Education Loan later on in life. Making them cultivate the habit of saving is not only good for paying loans off with ease, it can considerably change their lifestyle and make them financially smarter.
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Here are some smart ways to save and invest for your child’s education:
Start early
Be it a nursery, a school, or a college, tuition costs are only going to increase by the day. So, start planning your finances as early as you can to save enough to take care of your child’s education expenses. If you don’t start now, you might be sabotaging your child’s education.
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Set some targets
Before starting to plan and save, you must sit down with your partner and sketch a rough layout of your child’s future and all the expenses involved. It’s not only their education you’ve to save for, there are a lot of other expenses as well. Making a note of these milestones, the money involved in each, and setting some targets, will help you stay focused. You’ll know what amount goes where and that’ll sort a lot of things for you.
Automate the monthly contributions
To ensure that you put some money aside for your child’s education, make your contributions towards it automatic. This means that as soon as your salary gets credited every month, a fixed amount will get deducted and saved in some form. For example, a Fixed Deposit or a Recurring Deposit. You need to keep these savings undisturbed and it’ll help you save pretty well.
Know where you can cut down
Nobody said being a parent was going to be easy! You need to budget all your monthly expenses and sometimes even sacrifice something you’ve been eyeing for a while in order to secure your child’s future. Although this sounds pretty strict, it really helps! Your ultimate goal is to help your child build a successful career ahead. By cutting down on unnecessary monthly expenses, you’re taking a huge step towards that.
Give them early saving lessons
Along with all the other key things, teach your child one of the most crucial lessons of their life – SAVING. Although they will take quite some time to become financially independent, teaching them some valuable things can help ensure that they’re able to finance their post-graduate studies later. Small lessons like teaching them the importance of saving the money they get as a gift from relatives and using it smartly can help them understand the value of money. If you’re able to teach them how to save, half of your work is done!
Additional Reading: How To Teach Healthy Financial Habits To Your Kids
Explore all investment options
To ensure that your money multiplies faster, look for the right places to invest. Have you considered Systematic Investment Plans (SIPs)? Here, you need to invest a fixed amount in a particular Mutual Fund for a fixed period. Investing in equities is a bit risky, but it also helps grow your money in the long run, and that’s exactly what you want!
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All set to be a super parent? Start saving and support your child’s dream of joining that prestigious institute.