Tuesday 5 April 2016

To Me - #DoYourHomework

The average age of a couple that plans for their first child is 32 years in India. Although, inflation may be going on the down side a major expense of an average Indian household is growing at a fast pace. It is all because we want more for ourselves and our children. Indian parents still compare their own childhood but want to give their child the best.

The cost of higher education is already high and rising at 10-12 per cent a year. Children's education is one of the biggest cash outflows that new mums and dads must plan for their child’s future. A four-year engineering course costs roughly Rs 6 lakh right now. In six years, the cost is likely to touch Rs 12 lakh. By 2027, it would cost Rs 24 lakh to get an engineering degree.

In the earlier generations the competition was low. Now, the heightened competition for admission is forcing students to turn to more costly private institutions.

In the future, global education brands may come to India and their fees will be very high. Lifestyle inflation, too, has affected the cost of children's education. As the standard of living rises, it affects the decision about where one sends their child for higher education.

However, the big question worrying Indian parents is: will they be able to fund their children’s aspirations? They can, if they plan ahead and take the right steps. Our cover story this week looks at the challenges parents face while saving for their children's education and how these can be overcome.

Surprisingly, even today parents depend upon with fixed assets, gold savings, etc. We at The Indian Capitalist believe young Indians have a better option.
Start early and see them fly:

One solution is to start saving early. The individual will not only be able to gather a larger sum, but the money will also gain from the power of compounding. Investing in a secured Mutual Fund SIP on a monthly basis would allow a better capital appreciation just when your kids need.

To start early is to plan early. To plan early is to #DoYourHomework.

This is a note to me. I WILL DO MY HOMEWORK.

By - Chaitanya Kulkarni ( twitter.com/chai2kul )

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