Education opens a new world in our life, we get freedom through education. As a parent everyone wants their child to get the best education. He should get the best school in life, he should get the best opportunity, this is the thinking that education is the most important thing for a man. Which child or every child must get an education. Overall we can say that education is everything. And as a parent, we want him to get the best school in the field he chooses. But money becomes a big concern for education. Money should not be a matter of concern but now the situation has changed a lot. That’s why it becomes very important to do financial planning for your child.
Today in this article we are going to talk about all the things that will help in the financial planning of your child, so here we are going to tell you about some things, you have to read them carefully and understand them and import them in your life. If you want to do it, then you can do good financial planning.
Step 1: Decide Your Time Horizon
You will have to calculate the cost of the entire education of the child, from his schooling till postgraduate, you will have to do an approximate calculation. Which will help you in the time horizon and the more time you have, the more important it will be for you to plan. But you do not have to wait for the same time, you have to start investing for it from now itself, it is appropriate.
Step 2: Estimate The Cost Of Education
You should know in your mind how much it will cost you for your child’s education. Keeping these many factors in mind, you have to do this thing. You also have to keep in mind whether you want to give it global exposure or whether you want to keep it close to you so that it stays with you. You have to determine all his expenses while doing estimated cancellation and also add all his expenses which are going to be spent on his graduation.
Step 3: Evaluate Your Existing Assets and Liabilities
You will also have to pay attention to your current expenses and what are your assets so that your calculation will be accurate, so that you are going to invest in your child’s education and what are your income sources, now you will have to consider them as well.
Step 4: Approximate Amount To Be Saved Now
Once you know the approximate, you have to decide whether you are going to invest the money annually or want to invest on a monthly basis, if we believe then you should collect the money on a monthly basis. You have to keep this money separately, whether you put it in a mutual fund or in FD, it is your choice.
Step 5: Plan Your Investments Smartly
You have to invest smartly, you have to do asset allocation. Due to which you have to save or invest different amounts at different places. You have to start this investing keeping in mind your risk appetite. You do not have to invest your money anywhere, you have to take steps very carefully.
Step 6: Prepare Yourself For The Unexpected
You always have to take care of other things as well, you always have to save extra money so that you don’t have to take out a loan if you may need more at any time. You have to take care of the child’s tuition fees, pocket money and everything.
Step 7: Get Started Right Away
Now you will think who will be seen, then your talk is not going to be like this, you have to start this work from now, you have to invest, only then you can give a good upbringing and knowledge to your child, it all depends on you. Is that what you want for your child?