How To Plan For Your Child's Education? | CA Rachana Ranade

Summary

This video emphasizes the critical importance of financial planning for children's education, highlighting the impact of inflation on educational costs, which have been rising significantly. It contrasts two fictional characters to illustrate effective versus ineffective financial strategies. Viewers learn how to calculate future education expenses using the EDUFUND app, explore saving options, and understand the necessity of starting early to avoid the burdens of loans. The video also addresses common queries about investment strategies and career planning, underscoring the importance of proactive financial management to ensure educational aspirations are met.

Takeaways

• 😀 Financial planning is crucial for managing the rising costs of education.
• 📈 Inflation affects education significantly, with a 10% increase noted between 2012 and 2020.
• 💰 The cost of higher education has skyrocketed, from ₹1,66,400 in 2007 to ₹8,40,000 today for engineering courses.
• 📉 Many students drop out of college due to financial constraints, emphasizing the need for early planning.
• 🔧 The EDUFUND app can help calculate future education costs and necessary savings.
• 📅 Parents should start financial planning early to avoid loans at the time of admission.
• 💻 Short-term financial goals, like saving for a laptop, can also be managed through the EDUFUND app.
• 🧑‍🎓 EDUFUND offers career counseling to guide parents in supporting their children's educational paths.
• 🔄 The app allows for adjustments in financial planning if a child's career interests change.
• 📝 Continuous engagement with financial advisors can help optimize investment performance for education.

Q & A

What are the two key characters introduced in the video?

The two characters are Mrs. Vichare, who is good at financial planning, and Mrs. Bichare, who is not.

What is identified as the main villain in financial planning for education?

Inflation is identified as the main villain affecting the cost of education.

How does education inflation compare to other sectors according to the script?

From 2012 to 2020, education inflation was around 10%, which is higher than food inflation at 9.62% and healthcare inflation at 8%.

What significant trend is mentioned regarding the cost of engineering education?

The cost of a four-year engineering course has increased from approximately 1.66 lakh in 2007 to around 8.4 lakh today.

What percentage of students reportedly dropped out of college due to financial constraints?

Approximately 39% of students aged 20 to 24 dropped out because they could not afford education costs.

What tool does the speaker recommend for calculating future education costs?

The speaker recommends using the EDUFUND app to calculate future education costs and the required SIP amount.

What options does the EDUFUND app provide for users unsure about their child's future education path?

The app offers counseling services to help guide parents on potential career options for their children.

What are the consequences if parents do not save the suggested SIP amount for education?

If parents are unable to save the suggested SIP amount, the EDUFUND app can help facilitate education loans to cover the gap.

How does the EDUFUND app assist parents with short-term financial needs?

The app allows parents to set goals for short-term needs, such as purchasing a laptop, and provides a suggested SIP based on that goal.

What should parents do if their chosen investment funds do not perform as expected?

The EDUFUND advisory service can help rebalance their portfolio and suggest alternative funds if current investments are underperforming.