The cost of education is sky rocketing in India. According to a National Sample Survey office (NSSO) report, the average annual expenditure for general education, which is primary level to post graduation and above, have risen more than 170% from 2008 to 2014. The costs have only increased since then.
Today, if you wish to give your child the best education to ensure a bright future for them, you have to stay prepared for pay some very hefty fees. Your income and savings alone might not do the trick. You need to invest in a good education plan for your child. This will ensure that you never have to compromise on your children’s education or sacrifice your own needs for their well-being.
There are some excellent child education insurance policies available in India these days, with online calculators allowing you to make an informed investment decision. In the meantime, here are some tips on how parents can save for child’s education.
5 Ways Parents can save for Their Child’s Education
#1 Start Early:
If parents consider saving money from the time their child is born, they’ll be amazed to see the amount they can manage to put aside saved by the time their child turns 18. This will significantly reduce the financial burden of exorbitant fees of higher education.
#2 Invest in a Child Education Plan:
Child education insurance is the best way for parents to secure their children’s future. On maturity, the child will be paid the maturity benefits, which can pay for the hefty fees for professional courses to be an engineer, doctor, lawyer or architect.
#3 Keep Selling the Child’s Old Stuff:
Other than education, everyday items of kids are also expensive. As the kid grows, there is no need to stack their old toys, books and other items. Instead, use online portals like OLX, where you can sell them and use that money for the child’s future or use it to buy them things they need at present.
#4 Reduce Expenses Creatively:
you have to keep yourself equipped to get your child the best education, you might need to cut costs. Get into the habit of reviewing your expenses regularly. Make some changes to your lifestyle. Use electricity judiciously to save on the bills. Learn DIYs for home décor. Try to cook food mostly at home to save on restaurant bills. Cutting costs this way may reap giant rewards in the long run.
#5 Add a Side Hustle:
To make some extra money, apart from your regular job, you could consider some freelancing options, such as online tutoring, running a blog, becoming a virtual assistant or even trading cryptocurrency, all from the comfort of home. If possible, rent out a part of your home or take in a paying guest to earn some extra bucks.
When choosing an education plan for your child, take advantage of the child education calculator to know how much to save to reach your financial goals.