Simple Steps To Ease Your Financial Worries Over Child’s Education

STEP 1

Most experts recommend planning for the child's education and other expenses as soon as possible. It is never too soon in this case

STEP 2

Create an education fund; its size would mainly depend on your aspirations regarding the school you wish to enrol your kid in. Direct savings regularly into this kitty

STEP 3

Foresee future expenses; the fund should factor in not only current education cost, but also the likely inflation rate

STEP 4

First major source of expense is in the pre-school stage, when the child is around two years old. Saving towards this should be the priority

STEP 5

For short-term needs, like paying school fees when the child turns 4, invest money in fixed deposits or fixed maturity plans

STEP 6

Choose a balanced fund and park a sum equal to at least two years' school fee at all times

STEP 7

Concurrently, set aside some amount to fund your child's extra-curricular aspirations – be it music, dance or sports

STEP 8

To create a larger corpus for higher education, channel your savings to diversified equity funds with a longterm view

STEP 9

Read every investment product carefully and evaluate its suitability before you put your hard earned money in it

STEP 10

The estimated corpus post this period (about 18 years) and likely inflation will help ascertain any shortfall, which can be made good with study loans

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Also, know how to buy mutual funds online:

 

1) DSP BlackRock Mutual Funds:

http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html

 

2) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html

 

3) Sundaram Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-sundaram-mutual-funds-online.html

 

4) Birla Sunlife Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-birla-sunlife-mutual-funds.html

 

5) UTI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-uti-mutual-funds-online.html

  

6) SBI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-sbi-mutual-funds-online.html

 

7) Edelweiss Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-edelweiss-mutual-funds-online.html

 

8) IDFC Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-idfc-mutual-funds-online.html