Savings for Children

Give your Child a Promising Future. Just the way they have Dreamed it.

Savings for Children

Prepare For The Best

The best professional degree courses in India cost up to Rs. 23 lakh*
Similar courses abroad can cost signicantly more
Premium institutes have the pricing power and ination will take these numbers higher year after year
The cost of education should not come as a surprise to you
So, prepare for the best, though you may have options to choose from!
Save regularly with a goal in mind
Finances should not get in the way of your child’s dreams

Goal based Investing towards Child’s Education

Goal Based Investing

Targets a specif amount of corpus for your child’s education
Money is earmarked for a specic purpose. For instance, investors do not touch PF corpus for buying a car (as the money is earmarked for retirement)
Investors tend to rationalize their spending on other personal / social requirements
Investing with a goal brings discipline
Balances your current aspirations vs future requirements. A sizeable corpus can be built over time
Mental Accounting is involved, ensuring long-term holding of investments

Goal Based Investing

Savings are kept in a “common savings pool” without any goal in mind
Money gets withdrawn from the “common savings pool” for all nancial requirements
Tend to overspend on other commitments
What is left after spending gets saved
What is left out of the “common savings pool” may not be adequate to tackle specic goals like children’s education
Investors can get irrational in allocation of funds for various purposes and may resort to premature withdrawals

SIP or Lump Sum?

SIP

Investments at a predened monthly or quarterly frequency
For a salaried individual, the income is monthly and so should be the savings
Ideal way to develop a savings habit
As the income increases, do SIP Top Up
This would inculcate discipline as to spending what is left after saving

Lump Sum

Lump sum when you receive large ows like a bonus
Ad hoc investments on special occasions like festivals or your child’s birthday

Calculate your Child’s Education Needs