Planning for education is a critical personal financial decision of paramount importance. As top priority in most households, education planning needs careful consideration and forecast because education for various members in your household has different timelines.
Saving for you or your spouse
You can achieve your career goals or fulfill academic interests by augmenting your existing skills or acquiring new skills through Higher Education or participation in specially designed courses and skill enhancement trainings. The time horizon for these goals may vary between two and five years.
Saving for your children
Though you may create savings for either your child’s entire education cycle starting from kindergarten to higher education or for specific needs based on his/her current age, are you investing indirectly without really focusing on it? It is important to study fund performance before investing. You may look for options like education loan.
Saving for children is an important goal for most parents which calls for financial discipline such as
- Earmarking an amount to be invested at regular intervals
- Clarity on accumulated amount
- Avoidance of withdrawing from the corpus created for discretionary spending such as a holiday
Saving for Extended Families
You can achieve your goal of educating kith and kin by planning early on and by converting your tendency to save into a concrete corpus of funds with the right financial advice and foresight.
Before investing you need clarity on the following :
- What are the education needs of the family?
- How much should you allocate for education?
- Can you afford to spend so much on education?
- Can option of taking education loan fit in your portfolio?
- What percentage of the corpus would be saved and what percentage would be raised through education loans?
ArthaYantra can help you in education planning that will help you, your family and loved ones achieve your respective ambitions. Talk to our financial advisor about education planning for a bright future.
ARTHOS helps you determine the monthly savings and appropriate investment instruments that can help you accumulate the corpus required for child’s education. You can also monitor your investments and track the performance of your plan.