As parents, you want to serve the moon on a platter to your children. This includes making sure they receive the best things in life that unlock limitless opportunities for them. One of the primary ways of doing that is ensuring your child receives the best education. Long gone are the days of parents enrolling their children in the nearest school or college. As the world becomes competitive, and opportunities are bagged by only the deserving, your child’s education needs closer attention. Making resources available for their holistic learning involves rigorous investing for child’s future education.
As the cost of quality education rises along with fees and living expenses, the need for saving for college has now become extremely important. It can help you tackle the total cost of education strategically and systematically.
When to build an education plan for your child?
Saving for your child could begin from the moment they are born. While you might imagine this to be too far-fetched a thought for the pink lump of happiness you are holding in your arms, smart parents ready their child’s education fund much before they even learn their first letters of the alphabet.
The reason? The cost of education across the world is rising and there is no escaping it. The best way to prepare for it is to use an education cost calculator to identify goals and start saving for them little by little.
Once you have a set value shared with you, you can accordingly plan your investments. As with any investment plan, it is important to not keep all your eggs in one basket. This error can be avoided by diversifying your investments across vehicles.
Depending on the scale of your investment, you can opt for mutual funds SIP, US ETFs, other equity investments, tenured finance programs, and others. They will all cohesively work to help you build a plan for your child.
The relationship between investing and saving
Saving and investing for a child’s future end up being synonyms for the ignorant, but the two mediums of amassing wealth are vastly different. Savings is your wealth at hand that you managed to not spend by curtailing your expenditures. Investing is making your wealth work for you by investing it in multiple platforms that promise returns.
Understanding investing vs saving can help you clearly demarcate your budget for investing and set goals on saving. For example, you may plan on saving money by ordering fewer takeaways to invest that saved amount in a new mutual fund. Doing this repeatedly over the months can help you increase your disposable income for investments.
Finding our own investment pattern for your child’s future
A savings plan, much like our clothes, can never be one size fits all. It needs to be tailored to one’s needs and should be able to help achieve the ultimate financial goal. This means, your plans of early investing for child’s future need to also fit your income, lifestyle, responsibilities, and objectives so that you’re not stretching yourself too thin.
It is foolish to compare your savings plan with a friend’s. On the basis of your cost calculator projections, you can accordingly plan how much to invest every month. You even have several investment tools such as mutual funds, ETFs, and others. They enable you to build the wealth to support your child’s educational aspirations.
While the task of planning your child’s education through early investing may sound daunting, it need not be so. You can always start small and then gradually build on the investment momentum as you progress in life. Your first investments can be as low as Rs 100. They’ll still help you receive great returns to meet your goals.
It is most important that you begin this journey as young parents to take the best advantage of time and compounding of returns.
Your smart money move with EduFund
Still not certain about how to start your child’s savings plan for college? EduFund can help you plan better as a professional platform dedicated to financial planning for children’s education. It has a host of reliable, expert advisors who can strategically help your select funds that best suit your financial needs and objectives.
EduFund can help your child reach their global education dreams by allowing you as a parent to prepare for it well in advance. Advanced trustworthy personalized planning offered helps you allocate your resources tactfully through the years for you to be there when your child wants to take the big leap of passion for their education. Investing for child’s future with EduFund is the best decision you can take for your child.
The platform offers reliable, personalized advice to parents looking to build a future for their children that is free from any financial struggles. EduFund’s plans look at rising college costs and changes in inflation to help you create a customized portfolio.