Apart from ensuring that your child is well taken care of while a toddler, it is also your responsibility as a parent to save for your child’s future. With every passing day, education is becoming more expensive than ever, which makes choosing a child education plan one of the most important aspects of financial planning for every parent. Be it a child insurance plan or a child education plan, identifying the appropriate investment avenues is important. However, some parents are either negligent towards the importance of saving while some are simply unaware of its benefits. Here are a few mistakes to avoid while planning for your child education plan.
Do not start late
The idea behind a child education plan and a child insurance plan is to amass a sufficient amount of money with the help of small monthly contributions. This makes it a long-term financial goal. It is wise to start saving right after the birth of your child. It will give you roughly two decades to ensure that the funds you saved are enough to guarantee quality education for your child.
Don’t underestimate the cost of education
It shouldn’t come as a surprise when we tell you that education these days is far more expensive than it was a couple of decades ago. Also, the cost of education in our country may drastically differ from the education expenses abroad. Irrespective of what your child may want to do when he or she grows up, it is your responsibility to be prepared to help them accomplish their dreams and choose a suitable plan.
Choosing the wrong investment options
There are multiple ways in which you can fund your child’s education, be it mutual funds, fixed deposits, a specialized child education plan, or even ULIP insurance. However, you need to choose an option that generates adequate returns that match your goal. A specialized child insurance plan is one of the most attractive investment options.
Don’t compromise on your personal finances
We understand that as parents you want what is best for your child, but life is all about prioritizing. Saving money for your child’s education does not mean you need to repay a hefty amount for the rest of your life or be financially dependent on your children forever. You need to secure your financial independence before saving for your children’s education.
We hope you will avoid these mistakes whenever it is time for you to start thinking about a child education plan in the future.