Empower your child’s dreams: perspective of a financial advisor on Elementary Education Scheme – CNBC TV18

With more than 40 years of experience as a financial advisor, I have seen the importance of starting my children’s education plan for the first time, the day they are born. While many parents are committed to providing best education, they often cross the right costs – eventually put their financial security at risk.

Why education planning matter

Investing in your child’s education is beyond securing their future – it overall the society. An educated population fuel innovation, enhances economic growth, and promotes social progress. By prioritizing the education scheme, you are not only empowering your child, but also contributing to the progress of your community and country.

Disadvantages of not planning

In his determination to provide the best education, many Indian parents find themselves in a difficult place – they have to take their lives saving into retirement kitty to cover education expenses. This leaves them dependent on their children later in life, or forces them to work in their golden years rather than enjoying retirement.

But this is not like this. By starting the education plan early, you can give every opportunity to your child without endangering your financial security.

Educational inflation beaten

One of the biggest reasons for further planning is the shocking rate of education inflation in India. While the cost of normal living increases by about 6% per year, education expenses can touch the sky up to 10–12% annually. This “educational inflation” compound quickly becomes difficult to maintain, without active savings.

For example, today’s preschool cost increases by ol 1.5 lakhs, which can be ₹ 3.8 lakh in just 10 years at the rate of 12% inflation. During your child’s educational journey, these exponential cost growth can be unbearable when not addressed quickly.

As the child is still born, it is impossible to know what path they will choose in the future. Whether they choose to pursue higher education, it is important to be ready for all possibilities. By planning ahead, you can make sure that your child has resources that they need to follow their dreams, whatever path they can choose.

Reach the top institutions

Lack of education scheme can also limit your child’s options when time comes for college. Without adequate savings, you may have to compromise for less reputed institutions in India or abroad. But with a strong education fund, you can open the door to the top universities of India, as well as honor international programs.

It not only provides an extraordinary learning experience, but also enhances the chances of your child’s future career. Long -term benefits of an elite education can pay dividends for the coming decades.

Sip power

The best way to deal with rising education costs is that as soon as your child is born, start a systematic investment plan (SIP) in mutual funds. Even a relatively modest ₹ 20,000 per month, with ₹ 2,000 annual top-up, until your child finishes 12th standard, can be more than 1.05 crores.

Invested in 10% annual returns, this education corpus would be more than covering tuition, housing and other expenses in India’s top colleges and reputed international institutions. And you still have a large amount left to support your child’s future goals and aspirations.

Secure your child’s dreams

Education is one of the greatest gifts you can give to your child, but the financial burden can be difficult. By starting your plan on the first day, you can ensure that this cost does not become an inaccessible barrier to their dreams and ambitions.

Through disciplined savings and strategic investment, you can create an education fund that opens the world of immense opportunities for your child. You will also have peace of mind that their future and your own is safe. This Children’s Day is committed to investing in the success of the next generation

Author, Sandeep Gandhi CFPCM. The CEO of Mega Financial Services with a huge experience in financial services for more than 35 years. It can be reached on ceo@megafina.in or 9825078399.

Comment: This is a participation post.