Child Education/ Marriage Planning
Inflation in Education/ Marriage is 10%
If today I need 10 lac for higher education, probably after 15 years I shall need Rs.41 Lac. If today I need Rs.25 lac for marriage of my daughter, after 10 years I shall require Rs. 65 Lac. Are we planning properly.
Give time to your Goal
Suppose today is your Son’s/ Daughter’s Birthday and he/she comes and asks for Rs.41 lac for higher education, can you manage from your routine expenses. This is a big expense, you need to save regularly and in disciplined manner.
Higher education expense starts as early as 15-16 years
We need to plan our savings which can be redeemed at appropriate time. Stages of Higher Education are Preparation for Enterance Exams, Graduation fee/ Engineering/MBBS, Post Graduation fee/ MBA/MD. You may have child plan which will mature at age 21 of kid. It may be too late. Ask yourself do you need a Financial Planner.
Standard of Living expense
Many parents send their kids abroad for education because all cousins or friends kids are going. Marriage expense is directly correlated with Standard of Living. Photography expense and Marriage decoration expense have dramatically increased in last few years. Are you prepared?