Parenting is one of the most difficult jobs in the world. Gone are the days when parents couldn’t think beyond traditional career paths. Today, a kid has dreams of becoming an astronaut, content creator, or musician.
These goals keep evolving when your child becomes a teenager. As a parent, you should plan for your kid’s educational expenses. Considering their ever-evolving aspirations and rising costs of education, it is crucial to ensure that your child opts for the right career.
You can’t afford to plan your child’s education the same way your parents did. This is because society and the economy change from time to time. Parents spending on a single child’s higher education has gone up from INR 35000 in 2010 to INR 95000 in 2022.
Note that education planning can change your child’s life.
Ways in which proper education planning will provide your child with a rewarding career
1. Allows you to fulfill your child’s dream
It is imperative to save for your child’s education. In the future, the cost of education will be higher. There is no need to worry about your child’s studies if you have an education plan in place.
An education plan offers your kid financial flexibility. They can choose from various courses based on their preferences and skills.
2. Tackle unforeseen circumstances with ease
You will be able to tackle unforeseen challenges with ease when you plan your child’s education. Education planning policies usually offer higher education expenses along with college fees in case of unforeseen situations.
For instance, if any of the parents die, proper education planning will help your child to pursue their dreams.
3. Helps secure your child’s future
While you’ll always be there for your child, it is crucial to meet the financial objectives. With the rising cost of education, it is imperative to plan at the earliest.
Moreover, in case of mishaps, your family may struggle to fulfill your child’s academic objectives. Nowadays, education plans for your child come with goal protection features.
4. Leverage the power of compounding
Education planning will make you familiar with a myriad of saving methods. When you start investing in your child’s education plan, you will leverage the power of compounding.
You can keep a lumpsum amount of money secured for your child’s education in the future. Moreover, these funds will be easily accessible to your child when they want to pursue their dreams.
5. Allows you to plan other expenses
With an education plan, you’ll have a smooth financial path. In other words, you don’t have to sacrifice the goals of your child for the sake of other purposes.
Furthermore, if you don’t plan for your children’s education costs separately, you may have to use other essential funds reserved for retirement. Lead a stress-free life by planning for your child’s education.
6. Allows you to tackle inflation
Education inflation is a rising concern for modern-day parents. By properly planning for your child’s education you can tackle inflation. It is essential to save and let your money grow to fight the rising cost of education.
By planning for your child’s education, you can effectively guard your savings.
For instance, when the time comes to pay for your child’s education or buy course-related materials, you don’t have to pay from your savings.
7. Get access to withdraw money partially
With a child education plan, you can withdraw money partially. There are many child education policies that will let you withdraw money to pay for your kid’s education.
For instance, if your child wants to attend acting classes or guitar lessons, you can withdraw money to pay for these expenses.
8. Allows your child to develop good financial habits
One of the key highlights of an education plan is that it develops good financial habits in your child. You can simplify and structure your kid’s individual financial objectives.
Having an education plan for your child serves various purposes. For instance, it allows you to save properly.
On the other hand, it lets your child know how to prioritize their expenses properly. They can value your contribution to their life effectively when you have a child education plan in place.
9. Direct your child in the right direction with education planning
With proper education planning, your child can opt for the right stream. You can let your children decide what they want to study or become in their life. The right education plan can direct your child in the right way.
Education planning is a crucial aspect of your child’s life. With proper planning for your child’s education, you can align your income and expenses properly with your child’s educational aspirations. So, choose the right education plan to support your child’s career.
FAQs
Why is child education planning important?
The goals of children keep evolving when they become teenagers. As a parent, you should plan for your kid’s educational expenses. Considering their ever-evolving aspirations and rising costs of education, it is crucial to ensure that your child opts for the right career.
You can’t afford to plan your child’s education the same way your parents did. This is because society and the economy change from time to time.
What are the four purposes of planning?
- Allows you to fulfil your child’s dream
- Helps secure your child’s future
- Leverage the power of compounding
- Allows you to plan other expenses
What is the importance of planning?
With an education plan, you’ll have a smooth financial path. In other words, you don’t have to sacrifice the goals of your child for the sake of other purposes.
Furthermore, if you don’t plan for your children’s education costs separately, you may have to use other essential funds reserved for retirement. Lead a stress-free life by planning for your child’s education.
What is child education planning?
It is imperative to save for your child’s education. In the future, the cost of education will be higher. There is no need to worry about your child’s studies if you have an education plan in place.
An education plan offers your kid financial flexibility. They can choose from various courses based on their preferences and skills.
