What is a Child Education Planning Calculator?
The Child Education Planning Calculator or child education planner is an online calculator available to help parents calculate the amount they will be needing over the years for their children's education and other essential needs.
With a child education calculator, you can get a real time estimate of the amount you need to set aside for your child's education. The child education calculator uses a formula which takes into account variables for expected rise in inflation, your children's age now and when they would be needing the money and the current amount you have invested or saved up already for the children's benefit.
Saving for your children's education can be tricky if your goals for them are not clear. This includes thinking about whether your children want to pursue a professional course such as engineering or medicine and if so, whether they would do it from a premier institution in the country or go abroad for further studies like a Masters' degree or an MBA. Many children today are opting to go for unconventional careers and want to pursue subjects such as textile design, graphic designing, art history, linguistics etc. from elite institutions in foreign locations.
Even pursuing a conventional professionals degree in India can be a difficult affair. With competitions getting tougher each year and rising tuition costs, going for professional courses like engineering, law, medicine etc. from a National institute like NLU or AIIMS or from a premier private institution can also cost upto a few lakhs per year.
The cost of education not only includes the amount you need for tuition but also other essential expenditure such as room and board, dining, extra curriculars etc. Hostels and campus living arrangements are mostly borne by students, even when they are on scholarship. This means spending at least an extra lakh or two per annum on essentials and that is the going rate today.
A couple of years down the line, these costs will increase manifold due to inflation and your current savings might fall short by the time your child reaches college. You can opt to take out an education loan but the high rate of interests can make the payoff quite a difficult affair.
It is important that you spend some time and research various child investment plans. Review your current finances, savings and future investments to arrive at the current amount you are either saving or are willing to invest for your children's future needs. This not only includes education costs but also healthcare, insurance, investing in your child's hobby or talent (sports, music, dance etc.) and also an amount to cater for unforeseen emergencies like your untimely death or disability.
Once you have a fair idea of your current financial state, make use of utility tools like a child planning calculator to determine the cost of your children's education in the future and also get an idea on the amount you must set aside monthly to reach this goal. The child plan calculator gives you an estimate in seconds and you can use this number to start saving for your children's future.