Planning for your child's higher education is one of the primary responsibilities that you have. However, with growing expenses of education, the earlier you plan for it, the better. It is always advisable to save for your child's education rather than opting for a loan. Read on to know how to plan for your child’s education-

It is probably the most crucial step when planning for your child's education. You need to estimate the time left before your child starts applying for colleges or universities. It is advisable to start saving for your child's education as early as possible. Starting early does not only give you a head start and a chance of better returns, but it can also mitigate the effects of a market slowdown in the long run.

Estimating the cost of education is equally important when opting for an education plan for your child's future. There are various factors on which this depends-

The first thing you need to decide is whether you want your child to go abroad and gain global exposure or whether you want him/her to stay back closer to home. This is further dependent on the field your child is interested in. Are there any good schools in India for that particular course, or will you have to explore international options? Another question that you need to answer is whether you are looking for graduation courses, or are you on the lookout for post-graduation courses too?

Once you have decided all these things, you will then need to look up the estimated course fee for the courses. Once you have the fees you will need to factor in the inflation; experts suggest taking into account an average inflation rate of about 8-10%.

You need to take into account assets and liabilities when planning to raise a corpus for your child's education. You can turn to equity or debt funds or a mixed portfolio of both or a PPF or a child education plan even for planning for your child's future education. If you have enough time and do not have significant liabilities, you can rely more on equity funds to fetch you the desired returns. However, in case you want to play it safe, you can include more debt instruments in your portfolio. Another tried and tested way of generating funds are Child education plans. If you stay invested long enough, these plans are known to generate excellent returns.

However, remember not to disturb other goals or source funds meant for other responsibilities to raise funds for your child's education. This may prove costly for both you and your family in the long run

Once you have an estimated amount, you need to start saving. The best way to go about doing it is by saving some amount monthly. If you are investing in the market, opt for a SIP that automatically invests a part of your salary every month in a mutual fund. Alternatively, you can opt for a child plan in which you will have to pay monthly premiums. You can choose to have the same premium or can opt for increasing premiums to increase the probability of generating the target amount earlier. This can save you from having to go for the expensive student loans.

It is advisable to be prepared for unexpected expenses that might add to the planned costs. These include a fee hike, stationery and study material costs, tuition fee, accommodation and mess charges etc. When these expenses are clubbed together, they can add up to a significant amount. However, you can somewhat plan for these expenses too. Talk to the university alumni and students on campus to know about the money they are paying towards these services. Additionally, you may make a list and reach out to the concerned departments or people or do your research on the internet. When planning for these expenses, do not forget to adjust for inflation!

One of the best ways to save for your child's future is investing in a robust child education plan. These plans not only help you save, but are managed by experts and hence you can expect significant returns from them. The earlier you start investing, the better your chances are making it to your goal in time. Make sure to research thoroughly and compare the child plans before you purchasing.