It may not be easy to imagine planning for expenses before they arise. You’re still reeling from yesterday’s events (last month or last year). But, one of the keys to breaking free from the salary cycle is having the foresight to plan for known upcoming expenses or the possibility of future expenses.
Hopefully, as you continue to live within your budget by reducing your bills and other expenses, you will find more flexibility in your budget. As this happens, you will be able to plan for your child’s school fees, preventing you from having to start from scratch (or worse).
It is natural for parents to want the best for their children and education is one of the best gifts you can give them.
Even though education is the parents’ top priority, the costs are a major concern. They spend a significant portion of their savings on providing the best education possible. Thus, a financial plan to achieve this goal is important. It isa recurring expense that has to be planned for years (10-12 years in total).
Are you thinking about saving for your child’s school fees in advance? Well, this article is for you.
What are the different types of school fees and costs?
There are too many things to consider when saving for children’s education – from arranging their transport and tuition fees and buying new books and uniforms. Every parent needs to know about financial management to make sound decisions concerning their child’s education. When it comes to your child’s school fees and costs, there are two major categories:
- Tuition fees – This is the cost of your child’s school education. The school usually determines the tuition fee for each grade level based on the curriculum. Usually, the tuition fees for a private school in India start at ₹25,000 – 35,000 per year.
- Additional fees – These are miscellaneous fees such as uniforms and textbooks. There are also special fees that your child may need to pay, such as extracurricular, extra classes, picnics/school trips, science exhibition fees, school team fees (e.g. sports team fees), and books for special projects or events that the school may require your child to participate in.
Multipl – A fun and easy way to save for your child’s education.
You can use Multipl App to set a “Child’s Education Goal” and begin saving based on your ability. Save smart for your child’s education using Multipl’s ‘Save Now, Pay Later’ model while also earning market returns and brand cash.
On the app, select “Child’s Education Goal”, enter the amount and duration, and start saving. Multipl‘s proprietary investment allocation engine recommends the best mutual funds for you to invest in based on your risk profile. Besides, the auto-payment option relieves you of the burden of remembering to set aside a portion of your earnings for your child’s education.
With these tips you can start saving for child’s school fees in advance.