If you keep a tab on current affairs, you may be aware that the cost of the education is skyrocketing. Thus, if you are a young parent who has a kid, need to save early for your child’s education so that you need not avail a personal loan.
In major metro cities such as Delhi, Bangalore and Pune, there are many options for infants, right from primary to higher education. There are many costly international schools, the private engineering and medical colleges that are available plenty. You will need to pay a lot more than you think you can afford your child’s education.
In the same context, opting for a child saving plan can help you save early for your child’s education. There are many reasons to save early for your child’s education such as:
- The education cost is rising rapidly
As you read this, every year, there has been a trend in key metro cities to increase the cost of education to a whopping 10%. Yes, the Indian Institute of Technology (IITs) saw an increase in the tuition fees and by the time, when your child reaches that level of education, it will see a sharp increase. Thus, you should prepare yourself in advance and start saving for your child’s education by investing in a child education plan.
- Increase in the career option
The modern era has provisions for your child to choose exciting opportunities and gone are the days when parents only used to think engineering and medical streams. Your child may want to become an air pilot, teacher, graphic designer, writer and more and for him/her to get proper growth, you will need to support them with funds. For the same, if you start investing in a proper child education plan, you can easily start funding your ward’s many educational needs without taking any other loans.
- Education loan may not be good for your child’s future
While many parents avail an education loan to fund the educational needs of their children, it may still not be good due to many reasons:
- A child may have to pay back around 5-10 years of his/her monthly savings to pay back the loan. Hence, he gets late to plan for his/her financial freedom. And needless to mention, the vicious cycle goes on and on.
- If a parent avails an education loan for graduation purposes, the child may be forced to take a job even when he/she wants to go for higher studies.
- Education loan is not a good loan as the rate of interest by banks are offered at a higher rate.
The rise in foreign education options
Nowadays, the number of young aspirants making foreign trips for educational purposes is more. Thus, being a parent it should be your job to arrange for funds so that the lack of funds may not become a hindrance in your child’s progress. Thus, ensure to opt for a valid child education plan so that there are no hiccups when it comes to helping your child become a big shot in his/her career.
The Bottom Line
The insurance for child education comes handy when it comes to arranging proper funds for your child. There are many online child education schemes that you can compare and opt before availing as per your needs, and budget.
Now that the relevant reasons for subscribing to a child education plan are revealed, you should go for it and let your child fly high in his/her career.