ArthaYantra, a Hyderabad based online financial advisory and wealth management company has come up with a survey of working professionals on their personal finance habits. This research by ArthaYantra is intended to analyze the current personal finance habits of the Salaried Professionals and the effect of such habits on their financial well-being in the future. More than 2000+ professionals across different Industries with varied work experiences were studied to capture their current financial habits.
The research focused on the Personal Finance readiness of working professionals across age and geographic demographics working in varied industries. In this article, we focus on the results that show the personal finance readiness of the respondents to achieve one of the most important goals of our life, i.e. Child Education. With education inflation at 15%, it is a very important financial goal that needs immediate attention.
Financial Behavioral of Entry Level Professionals towards Child Education as a Goal
Financial Behavioral of Mid-Level Professionals towards Child Education as a GoalEntry-level professionals with 1-5 years of work experience did not rate Child Education as one of their top 4 financial goals. For them the goals that occupied priority positions were more short term in nature like buying a home, buying a car, buying a two-wheeler and marriage fund. This is not surprising considering the age group of this particular segment of respondents would be typically between 25-30 years.
The research clearly shows that professionals tend to realize the importance of saving for Child Care only after the child reaches the age of 3 years or more.The second segment consisting of Mid-level professionals in the range of 6-10 years of work experience rated buying a Home, buying a car, Child care and Retirement fund as their 4 top financial goals. Although Child Care happens to be one of the goals, Child Education as a goal does not figure in this list. This can be attributed to the cycle of life that a professional goes through usually between 30-35 years of age. This period is usually when the children are born and/or very young, which explains Child Care figuring in the top goals of this segment of professionals.
Financial Behavioral of Senior Level Professionals towards Child Education as a Goal
The results of the survey show that working professionals do not consider Child Education to be one of their top goals except for the 10+ years work experienced professionals. Most professionals assume that money management is necessary only when they have a lot of surplus. But regardless of income level and age, anyone who has income needs to have a well sketched plan to achieve their financial goals. This period coincides with the long term education plan of children which makes it a top priority.For senior-level professionals with 10+ years of work experience consider Child Education as a financial goal as their top priority goal. The other goals that follow Child Education are Marriage of Children, retirement fund and buying a home.
Education of the child as a financial goal is one of the most important goal in our life. It is important to plan for the education of children at the early stages of a professional’s career and to start investing in a diversified portfolio. Starting at an early age would enable the power of compounding to contribute effectively in goal achievement by ensuring sufficient funds when the child attains the age to go for higher education.
Written By Arthayantra