Parents often think about saving for their children’s higher education and marriage. However, without proper planning, it is difficult to achieve this goal. To achieve financial security for your daughter’s higher education, you need to follow a plan.
By saving a certain amount per month, there is a chance to accumulate 86 lakhs. The inflation of education costs in the country is increasing, making it necessary for parents to be prepared for the heavy expenses of their children’s higher education.
Fees for pre-primary classes in the country are already quite high. Post-graduation in a good educational institution requires at least 15 lakhs. Considering an estimated inflation rate of 8% every year, in the next 19 years, at least 65 lakhs will have to be spent on education.
With proper planning, including regular investment in diversified equity mutual funds at the rate of 10 thousand per month for 20 years, you have the potential to reach your financial goal.
Most types of mutual funds currently offer an average return of 12%. By investing an average of 10,000 per month at an estimated rate of 12%, it is possible to accumulate more than 86 lakhs.
Furthermore, it is advisable to increase the investment amount by 10% every year whenever there is a salary increase. Doing so can result in an accumulation of 1 crore instead of 86 lakhs.
When your daughter turns 20, this money will be available for her higher studies or marriage, providing financial security and relieving any burden.
It is also recommended to take a term policy worth at least 12 times your annual income and to acquire a health insurance policy to cover the entire family, ensuring financial security for the family.