The purpose of Children's Future
Planning is to create a corpus for
foreseeable expenditures such as
those on higher education and
wedding, and to provide for an
adequate security cover during their
growing years.
Children's Future Planning acquires
added importance because children's
education and wedding are high
priority life goals, which can
neither be postponed nor can there
be a compromise on the amount.
Good education has always been the
passport to a secure future. Today,
career opportunities have grown
manifold, and there are many
professional course that your child
can aspire for. However, costs of
higher education have also increased
exponentially.
Like most
parents, you might be saving regularly to ensure a safe tomorrow for
your child. However, savings alone is no longer enough. For ensuring
adequate funding of your child's education, you as a parent, need to
do two things:
1. Invest
appropriate amount systematically and at regular intervals
2. Provide for a financial security blanket to cover any eventuality
It is never too
early to start saving and investing for your child's future.
Especially in today's context. For example, the cost of a
professional degree today is approximately Rs 2.5 lakhs. If your
child is one-year-old today, after 17 years when he/she goes to
college, you may require a sum of Rs 6.3 lakhs, assuming an annual
rate of inflation of 6%.
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