Children Education Planning

What is children’s education planning?

Children’s education planning is the process of planning for the education and career of your child in advance. The process involves planning to understand the amount needed to sufficiently fulfill your child’s education requirements and the right investment strategy considering factors like tenure, investment amount, and inflation.

Why it is important to do children’s education planning?

Child’s education: Education planning will help you get started with an investment strategy and will put your plans to action. 

Rider benefits: Avail waiver of premium to make sure the child received the due benefits even when the parents are not around. 

Tax benefits: Tax benefits can be availed on the premium paid for a child’s education. Also, the tax deduction is also available on the maturity amount. 

How to Build Corpus for Child Education?

Don’t let yourself get overwhelmed by a lack of savings rather devise a smart strategy to build a corpus that will support you at crucial junctures of your child’s education.

Invest in Government-Backed Schemes:

PPF is the best savings account when it comes to long-term planning. PPF account will allow you to build a corpus and will give you great tax benefits. It belongs to the EEE category, you can avail of tax benefits of Rs. 1.5 lakh per year on the investment amount. Tax deductions are also available on interest income and maturity proceeds.

Invest in Endowment Child Plans:

Endowment plans are designed to fulfill the educational aspirations of your child. These plans work as regular endowment plans and provide insurance coverage along with being an investment avenue. 

Invest in Debt/Equity Mutual Funds:

Mutual funds are the kinds of investments that allow you to save money for a greater tenure. You can choose equity or debt mutual funds that remain invested for long periods. Such investments qualify you for better returns as well as battle inflation.