As a parent, you always thrive on providing your kids with all the best facilities. You want them to become successful and be happy in life. Every child has dreams and so does yours. They might want to become an F1 racer or might want to hike on Mount Everest. Being a parent you would like your children to chase their dreams and would encourage them to do what makes them happy. Providing them with proper education is necessary and it has become extremely important in today’s competitive world to have a decent education.

A child plan can help you maximize your savings so you can continue to plan your child’s future. You must make up your mind and build up an amount that would help your child to get through various phases of life.  The main reason why you should invest in a child education plan is to make sure that your child’s education is stable even if something unfortunate happens to you. A child plan can be considered as a life insurance plan that gives you an investment opportunity. Thus, you are not only planning your child’s future but making sure that their dreams are secured even if you are not there to look after them.

Why should you invest in a child plan?

Below are a few vital reasons that make a child education plan important in this rapidly moving world:

Increasing education cost

At the initial stages, paying for your child’s education will include his/her kindergarten fees along with those fancy dress competitions and school field trips. Going on, when your kid is old enough to go to college, you would have to pay those incredibly high tuition fees. As a result, you would need to plan your finances accordingly, to keep up with the increasing cost of education per year.

Avoid heavy educational loans

There are plenty of drawbacks to taking up an educational loan. Having a child education plancan help you dodge these drawbacks and you can put your savings to work today. By the time your child is ready to go off to college, you’ll have the right amount of money to take care of all their expenses.

Combination of investment and benefit

A child plan can be considered as a combination of both investment and benefits. Investing in a child plan not only gives you a chance to grow your money under the plan but also keeps it protected from all events in life. Most child plans offer you to strengthen your plan by various add-ons which cover your investment against accidental death, accidental total, and permanent disability, and ensures that your child receives the benefits of the plan at any cost.

Sadly, in today’s world, joy and happiness cost money too, and if you are a parent or a parent-to-be, then your priority might be securing your child’s present and future. Investing in a child plan at the initial stage can be a good option as it helps your investment grow and helps you build the minimum required capital for your child’s education. The earlier you invest in a child education plan the better for you as it balances your investment risk.

How to start saving up for your child’s educational plan

Investing in a child plan is the best way to save up for your child’s future as early as possible. As a parent, you can save up for your child’s future as follows. These five steps can help you determine the exact amount of money you need to save up monthly to meet your future target for your child’s secured and safe educational purposes.

1. Determine how long would it take for your child to complete his/her education

Timing is very crucial when you are investing in any sort of plan or policy. Based on the current age of your child and by which age they will finish their higher education, you should determine how long you have to save.

2. Determine the cost of education

Research about the ongoing cost of education, mainly depends on where you are staying, the level of education you want your child to pursue, and the type of college you want them to be admitted into. You should also determine whether or not your child will be studying abroad for graduate and postgraduate degrees and whether it will be a private institution or not.

3. Determine the impact of inflation

According to research, the cost of education is expected to rise faster than any other services. You should be accounting for this as well and as a result the impact of inflation is essential.

4. Choose a rate of return

Choosing a rate of return is important for any plan and policy. You should generally pick a rate of return that is more than the rate of inflation. This makes you preserve the purchasing power of your money. As we all know that the rate of return is not fixed,  however, we can take an estimated guess of the returns on a slightly risky child plan.

5. Estimate the required monthly savings

With the inflation rate and the rate of returns in mind, you can finally estimate how much you would have to save up each month. Having a calculated child education plan can help you reach your target easily. Canara HSBC Oriental Bank of Commerce Life Insurance gives you ample options to choose from and make an informed choice to help you provide your child with a safe and secured future. .

Being a parent can be a challenging task and needs proper and precise planning. As a parent, you would like your child to get the best education from the best institutes, and what is better than planning for that today with the help of a child plan. Education has become a necessity for an individual to be respected and have a good future ahead of themselves. A child plan not only provides your child with good education but also ensures that they receive their education under any circumstance. With a child education plan, you can provide your child with proper education to make them successful individuals in these competitive times.