How ready are you for your children's career needs?
By Madhurie Singh, January 14, 2016
Today my older son came back from school and announced, “Mom, I will be joining a coaching class from next year! I have to prepare for entrance exams!”
Now that’s something that all parents must be dying to hear. But, I was a bit surprised and also relieved. At-least, I do not have to tell him the value of education!
So, I told him to search the coaching centres around our house.
He again announced, “It is all searched and WE have decided to join the one in Viman Nagar! So all you have to do is pay them something close to Rs 1 lakh for one year. And as you had promised that when I start to travel on my own you will give me a sim card, you have to arrange for that too!”
So for my son, life is set. School, coaching class and a mobile phone with sim card. (Currently he uses my old Iphone without sim)
OMG! I recalled this whole conversation was to avoid giving him sim card, nearly 3 years back!
Time is flying! 2015 just flew past!
Then 2016, 2017 and one by one each New Year will fly by and that big day will arrive when I will be facing the day my first son will be ready for his higher studies. Since his passion and interest is pretty much known to us, we know that he will have to complete his masters to be what he wants to be. He will also have to do his MBA as his final goal is to start a gaming company!
As I am writing, I can feel butterflies in my tummy. Not because he is growing so fast but because my bank balance is not growing as fast!
If you have not read my previous two articles, do read them as they were my initial wake up calls.
Once again I am back to square one. So I did a bit of googling about the expenses for higher studies.
I have a second son who wants to be a Ferrari Racer!
Just the cost of teaching them the basics of racing in Pune cost us 20 thousand for 2 day training! So imagine the cost of training to be a Ferrari racer!
Children today have innumerable career options, thus we need to be prepared and should do our homework. We need to be prepared both emotionally and financially to fulfil our children’s aspirations.
Do Your Homework parents! Like I am doing now.
I found about this link from Axis Mutual Fund to assess how much I need to save per month and lump-sum to provide for my sons’ higher education and plan for children’s future. It’s basically a Homework App to help you first know if you really are aware of what your child want to be and then calculate the amount you need to save for him/her.
I found this chart there but this is a general calculation. You must calculate as per your own child's requirements.
You have to start saving in Mutual Funds and Tax saving plans ASAP! There are plenty in the market. Just choose one and stick to it. Remember Mutual Funds are like the bamboo shoots. You will have to keep on watering them for a very long time but once it grows, it will grow in leaps and bounds!