One may have several financial goals,but when it comes to prioritizing, we all tend to put our children’s future on the top priority. In India, we spend a lot of money on our Child’s Marriage and for our Child’s Education.
Usually most parents due to lack of investing knowledge are unable to plan well and underestimate the amount of money needed for both these goals.
Today, higher education has become particularly expensive due to inflation, so its important to start planning and saving early. With increase in competition and the need for seeking education in private Institutions for better infrastructure, more opportunities, higher courses, children are forced to look out for best Institutes not only in India but also globally and this means bigger cash outflows!
Investing early will help you build a corpus and you can capitalise on the same at the right time. Its always said that 'The earlier you plan for it, the greater will be the benefits.' This is because if you start saving and invest early, it will give you a longer time horizon to meet your financial goals.
Often, parents dip into their retirement savings to meet high expenses of education, but this can be a risky move. "Just because you have funded your child's education, there is no guarantee that they will look after you in your old age.
Similarly, every parent desires a dream wedding for their children. All parents, want to make the wedding of their child one of the most memorable occasions of his / her life. But the ever-rising costs of expenditures can prove to be a deterrent to your plans when the time comes. Today weddings are getting grander by the day and every thing comes with a price tag !
To achieve specific goals set for your child, calculate the potential future value of the corpus required after adjusting for inflation. This will save you the right amount of money. You can also use our 'Goal Planner Calculators' that help you to do this very easily.