Another option is to go for an investment plan that matures around the time you need to pay for your child’s higher education. You can also explore the option of taking a personal loan. You can submit an application for an instant personal loan when you need to pay the fees and admission charges for your child’s college.
Here are some tips to ensure a good education for your child:
Build a Financial Plan
Planning your finances is an excellent way of managing all your education-related expenses. The earlier you start, the better it is. So, start thinking in advance and estimate the expenses that you will need to incur to get your child a good education. Although it is difficult to know which stream your child will take up in the future, you can make a rough estimate and plan accordingly.
Account for Inflation
While planning for your child’s education, do consider the impact of inflation and then estimate your fund requirements
Once you have estimated the amount of money you will need to fund your child’s school and higher education you need to start saving. Keep a specific portion of your monthly income aside for this purpose. You can even invest in a child growth plan or a systematic investment plan or an education fund or long-term bonds or any other investment mode that will give good returns at a time when you need them. You can choose an investment avenue depending on your risk appetite and the time horizon when you need the funds.
Consider Life Insurance
You need to be prepared for the unexpected and ensure that your child’s education is possible even when you are not there. For this, you should go for a life insurance policy or policies of amounts that can cover the education cost of your child. A health insurance policy will ensure that unexpected illnesses do not put a halt to your financial goals.
Apply for a Personal Loan
Planning can prepare you better for meeting your expenses in the future. But many a time, when your child gets admission in a high school or university, you find out that there are many other expenses than the tuition fees. These may include travel expenses, hostel expenses, food and, pocket money for your child. You can fund these expenses by using your savings. Another attractive option is to apply online or offline for a personal loan. If you have a good credit record or your creditworthiness is good, you can get personal loans at good interest rates.