All parents want their children to get better education and fulfill their dreams. But in this era of inflation, the cost of education is increasing rapidly. In such a situation, it is very important to prepare an education fund for children’s education in advance, so that lack of money at the right time does not become an obstacle in the children’s future. With right investment and smart financial planning, a large fund can be prepared for children’s education. If you also want to secure your child’s future, then it is necessary to know everything about this. How to build ‘Education Fund’? We will also know that- Expert: CA Adarsh Byouhar, Financial Expert, Bhopal Question- How to calculate what the cost of children’s education will be in the future? Answer- For this, find out these three things- A course that costs ₹1 lakh today can cost ₹4-5 lakh after 10-15 years. Understand this from the graphic- Question- What is education inflation and how fast is it increasing? Answer- Education inflation means the continuous increase in education-related costs over time, such as fees, coaching, books, and hostel prices. This means that education that costs ₹1 lakh today could cost ₹2-3 lakh in a few years. Question- When should one start building a fund for children’s education? Answer- For this, the sooner you build a fund, the better. Ideally, one should start investing immediately after the child’s birth or in the early years. Why is an early start necessary? Question- What are the benefits of starting early? Answer- It can significantly reduce the financial burden. See all its benefits in the graphic- Question- How much should one invest every month for an education fund? Answer- For this, investing 10-15% of your income every month is generally considered a good rule. The right amount depends on these factors- Therefore, it is better to decide investments according to your goal. If the goal is big or time is short, then you may have to invest more than 10-15%. Question- Which investment options are better for children’s education? Answer- While investing for this, you should choose options that give good returns in the long term and have balanced risk. See investment options in the graphic- Question- What is SIP and how does it work? Answer- SIP is a method in which a fixed amount is invested in mutual funds every month. Through this, a large fund can be built gradually. SIP is beneficial in building an education fund because- For example, if someone invests a small amount in SIP every month, it can become a substantial education fund in 10-15 years. Question- What is the impact of compounding on children’s education fund? Answer- Compounding means that the returns received on investment also start earning returns going forward. That is, interest is earned on interest. This has a great benefit in building an education fund, because- Question- What will happen if investment is stopped in between? Answer- These disadvantages may occur- Therefore, it is better to continue the SIP for a long time, so that the goal of children’s education fund can be easily achieved. Question- Is an education loan a good option? Answer- Yes, it is a good option, but it should be used only as a last resort. See the advantages and disadvantages of education loan in the graphic- Question- What common mistakes do parents make in creating an education fund? Answer- These mistakes weaken the education fund and achieving the goal can become difficult. See all the mistakes in the graphic- Question- What should one do if they haven’t started yet? Answer- If the child has grown up and you haven’t started the education fund yet, don’t worry. You can start from now. What to do? Even if the start is late, with the right strategy and discipline, you can prepare a good portion of the child’s education fund. Question- What things should be kept in mind while creating a fund for children’s education? Answer- With proper planning and discipline, the goal of children’s education can be easily achieved. Golden Rules- Post navigation Gold and silver witness decline this week:Silver prices drop by ₹2,650 to ₹2.63 lakh per kg
