It’s all about a bright future

There has been a subtle shift as far as financial planning is considered. As early as a decade back, long-term financial planning revolved around building a house and and conducting a daughter’s marriage. Retirement was normally taken care of by pensions and provident funds while children’s education was more of a peripheral expenditure. So what has changed in the last one decade? We will have a detailed discussion on it in some future posts.

Planning your child’s future has become more critical in the light of the rising costs and higher education. According to conservative estimates, a parent would be spending anywhere in the region of Rs. 25 lakhs to Rs. 30 lakhs by the time the child completes professional graduation degree. The expenditure on a Master’s or a Doctorate degree, in your home country or abroad, could take your total cost anywhere in the region of Rs. 50 lakhs to Rs. 1 crore.

Any plan for your child’s future should be broadly based on a few key guiding principles. Let me reiterate here that consistency, security and discipline need to take precedence when you embark upon the journey of planning the children’s future.