Balancing your children’s education expenses with retirement savings can be challenging but is crucial for long-term financial health. While education is often a priority, parents must avoid neglecting their retirement planning.
Start by estimating the cost of your child’s education, considering inflation. Use SIPs in equity mutual funds or child-specific savings plans to build an education corpus over time. For daughters, the Sukanya Samriddhi Yojana is an excellent option with tax benefits and competitive returns.
Simultaneously, continue contributing to your retirement funds, such as the NPS, EPF, or PPF. Avoid dipping into these funds for short-term goals, as it could compromise your financial independence in later years.
Consider education loans for higher studies, which can reduce the immediate financial burden while preserving retirement savings. Loans also teach financial responsibility to children.
By prioritizing both goals and planning early, parents can secure their financial future and support their children’s aspirations effectively.
