Oh my God ! 30 lakh to one crore rupees spent on children’s education! Know How To Manage India Child Raising Cost School Expenses 30 Lakhs College Know Plan To Manage One Crore

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Entrance coaching costs in lakhs

Elite colleges are also a fact in India. 23 I.I.T. Or like any other private institute, a top ranked engineering college costs around Rs 4-20 lakhs to get admission for 4 years BTech or 3 years BSc. The cost of coaching for entrance exams like JEE, JEE (Main) and other exams ranges from Rs 30,000 to Rs 5 lakh. A top-ranked management institute such as one of the 20 IIMs, or any other private university in the country, costs between Rs 8 lakh and Rs 23 lakh. Coaching for preparation of qualifying tests like CAT or GMAT costs extra.

The cost of education such as ca

The cost of education such as ca

Fields like Finance or Certified Public Accountant (CPA) cost Rs 3,60,000. A Certified Management Accountant (CMA) will cost between Rs 80,000-1,20,000. It also covers training, exams and IMA membership fees. According to Varun Jain of Miles Education, training fees may vary from one institution to another. Students pay examination fees and association membership fees in dollars and any change in the exchange rate may result in minor changes to the overall fee structure. To complete the Chartered Accountancy course, the total cost apart from tuition fees is Rs 86,000.

Better option to start investing early

Better option to start investing early

Experts say that parents should plan for their child’s education as soon as possible. According to Tarun Birani, founder and CEO of TBNG Capital Advisors, there is a need to consider short-term and long-term goals and invest in the right options keeping the goals in mind. He said, the best way to plan for a child’s future is to consider the important stages of the child’s life like education, higher education and even marriage and start investing at the earliest.

Costs need to be considered

Costs need to be considered

Tarun Birani says that having a child in the family increases the monthly expenses by 2 times compared to adding an adult to the family. Parents need to consider expenses like food, medicine, diapers, clothes, baby care products and regular visits to the pediatrician during the first 4-5 years of a child’s development. As a standard, parents can expect to spend 50% of total expenditure on health care in the first three years of a child’s life. Parents can expect at least a 10% increase in childcare costs each year.

Create an emergency fund

Create an emergency fund

Expenses can be divided into short term and long term. Short-term goals include expenses within the next 1-3 years of the child’s education, such as school fees or fees for any extra-curricular activities. An emergency fund of 3-6 months of expenses before the children are born is sufficient, advises Birani. After the birth of children, it is better to cover expenses for 6 months to a year in cash or cash like investments like fixed deposits, liquid funds and ultra-short term funds.

You can invest on this formula

You can invest on this formula

“Parents can also look for investments for long-term goals (above 10 years) in a portfolio of 85% equity and 15% debt,” says Birani. Parents can also consider enrolling the child in Family Floater Health Insurance and extending the health insurance coverage to a minimum of Rs 10 lakh and above.

Along with investment, capital protection is also important.

Along with investment, capital protection is also important.

Long-term goals will include the cost of graduation, higher education and marriage, according to Capital Advisor Birani. He advised that when the goals are three to four years away, it is advisable to reduce the equity allocation and switch the fund to a low-risk debt fund to ensure safety of capital if needed. Birani also suggests a high volume equity portfolio. Parents need not choose portfolios that are too aggressive, as some degree of capital protection is also necessary.

Also Read- How much does college life cost for kids, zero amount will make you sweatAlso Read- How much does college life cost for kids, zero amount will make you sweat

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