4 min read.Updated: 12 Sep 2022, 08:34 PM ISTLivemint
Planning for the child’s education is a key part of every parent’s financial planning.
Listen to this article
Planning for the child’s education is a key part of every parent’s financial planning. While everyone intends to save up for the child’s education, how you invest your savings can be the difference maker between good and bad financial planning. Investing all your savings in fixed deposits or other debt instruments will only help you keep pace with inflation and not build a significant corpus. Worse still, if education inflation outpaces the core inflation as it has in the past few years, you might actually be ‘destroying’ the corpus. On the other hand, the parent who had been saving for their child’s education in an equity-heavy fund just before the onset of the Great Recession might have wondered where they went wrong with the whole ‘equity outperforms other asset classes’ messaging. Another thing that I have seen people ignore is the inflation in education fees making their plans assuming the fees will be the same forever, rather than adjusting with inflation.
Recommended For You
Select your Category
Internet Not Available
Wait for it…
Log in to our website to save your bookmarks. It'll just take a moment.