How Can You Protect Your Child’s Education In The Face of Rapid Inflation?

According to a Bank Bazar investigation, inflation in the education sector is increasing twice as swiftly as general inflation. According to the report, education inflation was closer to 11–12% during the last 10 years than consumer price inflation, which averaged about 6%. As a consequence, every six to seven years, the cost of schooling doubles. The parents must also make sure that their children do not have to settle for less-than-ideal institutions or programs of study due to a lack of financing. In this step-by-step guide, we’ll show you how to put away money for your child’s education.

Save money early.

Find out when money for the education of children will be needed. In terms of years, you need to know when the youngster will graduate and when he will be a postgraduate. You’ll need to save aside a sizable sum of money specifically for his college expenses. This time will benefit you more if it is extended. In other words, you will be able to plan better the sooner you start saving for your children’s higher education.

Based on your child’s goals, do calculations.

Decide how much money may be set aside for schooling. But a lot of variables come into play, like the subject your kid wants to study, where they want to live while attending school (at home or away), and if they want to study overseas. All of these things need to be taken into account. Additionally, you must also take the yearly rate of inflation into account. The cost of an MBA at IIM might be anything between 11 and 30 lakhs. By including an inflation rate of 11%, you may estimate how much a child’s education will cost over the next five years.

Cut your coat to fit the fabric.

Before you start planning, review your current financial condition and list of responsibilities. You must also take into account any other financial goals you may have in addition to the child’s education. You may be able to make better planning selections if you keep everything in mind.

Start saving money by making deposits.

Once choices have been made, calculate how much you may deposit. If you have a lump sum of money and would want to save it without taking any risks, you may invest it in fixed deposits or post office savings plans.

Samriddhi Yojana for Sukanya

You may put money into the post office’s Sukanya Samriddhi Yojana if you have a girl. This program features continual capital growth and is completely tax-free. This is a good approach to save money for your daughter’s education.