It is every parents dream to provide the best of everything
for his child. A sound education would undoubtedly be
at the top of the list. However, it now costs more to
amuse a child than it once did to educate his father.
Quality education comes with an expensive price tag,
and you need to invest today in order to gift your precious
one the education he deserves tomorrow.
A simple illustration demonstrates why planning today is
essential:
Course
What it costs
today (Rs.)
5 years
later (Rs.)
10 years
later (Rs.)
15 years
later
Engineering
5,00,000
7,35,00
10,80,000
15,85,000
Medicine
15,00,000
22,05,000
32,40,000
47,55,000
Management Education
8,00,000
11,76,000
17,28,000
25,36,000
Education in a foreign university
15,00,000
22,05,000
32,40,000
47,55,000
(Increase in the cost of education assumed at 8% every year)
Sounds alarming? Not if one plans for it.
While borrowing could be a way out, the high cost attached
to it may not make it an attractive proposition.
Therefore it pays to have an investment plan in place which
in time, allows you to comfortably meet with your child's
educational needs. For example, you require Rs.4.50 lacs 10
years from now for your Child's education in management, you
need to set aside on the following lines, assuming you would
earn an average return of 7 %
Investment
Balance
Investment
Investment
Nil
10,00,000
56,947
4,751
1,00,000
9,00,000
51,257
4,271
2,00,000
8,00,000
45,558
3,770
One might feel confident of today's planning for tomorrow.
But as the years go by the eroding power of inflation and
reducing interest rates can upset the original goals that
we set. Committing now and reviewing it periodically to ensure
that the goal is not upset, is the most prudent planning.
