5 Reasons to Save Early for Your Child’s Education
Parents are going above and beyond and spending a significant amount of money on the upbringing of their children out of a strong desire to see that their children receive the best.
Parents are constantly concerned about providing their children with a good education. In order to ensure that their kids have the best possible start in life, all parents go above and beyond, investing a significant amount of money in the child’s early development as well as future schooling.
Parents frequently fail to see the big picture and neglect to plan and save for their child’s higher education objective since they have so much to spend on during the parenting period alone.
When you start saving for a child education plan in India when they are young, you give yourself ample time to set a reasonable goal and save more effectively without feeling rushed. Until the time comes for college, any additional funds in your account will continue to grow tax-free. There are many investing choices that can be used to save a sizable sum of money for the child education plan India. You can save money in accordance with your child’s educational objectives.
Below are five reasons why you should save early for your child’s education.
Education cost is rising rapidly
Due to the recent, unexpected spike in tuition costs. To ensure more money, it would be wise to start saving early. The recent increases in India’s inflation rates have resulted in a doubling of tuition costs. Education costs, whether for high school or college, are affected. Many students have dropped out of courses in the middle of them as a result of growing costs and hidden fees, but you may prepare for the future with careful planning and a child education investment plan.
Every child education plan for direct education is directly threatened by education inflation. The impact of inflation may cause you to reevaluate your future plans, whether you consider raising tuition fees or desire to pursue a higher education abroad.
Many families now have to choose between compromising with a child’s future or overspending on education due to inflation. Parents and students have taken out large loans or left college as a result of the rising tuition rates and hidden costs. However, smart child education investment plan strategies can assist families in paying for their children’s future education. Early savings are more effective in the long run.
Increase in career options
Children may desire to follow many job paths given the abundance of career alternatives. In reality, having multiple employment options is pretty normal these days. In addition to the well-paying and popular job alternatives like medicine, engineering, management, chartered accounting, etc., there are a tonne of other options in the fields of health care, travel and tourism, media, and other related fields. The candidate’s interest is undoubtedly a factor in their career decision, as are the job possibilities in the industry. The days when parents primarily considered the engineering and medical fields for their children are long gone. The greatest thing to do is start saving early so that your child can spread his wings and learn as much as he wants.
Education Loan may not be great for your child’s future
While most parents find relief in school loans, this may not always be the best course of action for parents. The repayment of the education loan will take your child more than 5–6 years of his starting career and monthly savings. As a result, the child can wait too long to start making plans for his future. Child may be obliged to choose a job even if she may desire to pursue higher study if an education debt is taken out for graduation.
Additionally, there are very high interest rates on student loans. Overall, it is better for parents to begin early preparation for their children’s education rather than subjecting them to the burden of student loan debt.A loan for education is not a good loan. The majority of banks charge a high interest rate.
Rising Aspirations
Due to contemporary life, we are all quite aspiring. Every day that goes by opens up new alternatives for both you and your child. Additionally, your child will experience enough peer pressure to keep up with the fast-paced, competitive environment.
It is crucial that your child keep up with the times and be current with all of the latest events in her area. However, it’s also crucial to not let your excitement run too high.
A better method to prepare is to save a sizable sum of money for your child’s future educational aspirations before determining how much to spend on the remaining funds.
Rise in foreign education options
Over the past few years, it has been rather usual for Indian students to pursue higher education abroad. More Indian students than ever before are enrolling in universities abroad. Therefore, the greater expense of attending overseas universities can significantly reduce any savings. Therefore, it is preferable that parents begin planning.
The Indian Rupee has been steadily losing value versus the US Dollar at the same period. This indicates that the cost has increased by almost 35% only due to the rupee’s devaluation over the last three years. Additionally, the cost of education has increased in industrialised nations, and there has been an increase in rhetoric calling for the elimination of financial aid for international students, which is bad news for students.
Conclusion
The aforementioned explanation makes it quite clear that you must get started early and establish a good strategy for your children’s educational aspirations. Starting the journey later by a year could cost you dearly. There are many products and solutions available, even if you are pretty certain that you want to start saving early for your child education investment plan.
It’s best to start saving for your child’s education as early as possible, even before he starts kindergarten, as this will help you avoid having to take on large debts to pay for your child’s further education. We should also not overlook the fact that starting early allows us to profit from years of compounding gains.
