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Child Education Cost Planning Calculator

Raising a child can be one of the most rewarding experiences of life. Seeing your child grow up to become a responsible and financially stable person is what parents wish for. Education plays an important role in determining a prosperous and stable future for a child.

Child Education Cost Planning Calculator

Thus, planning for a better education for your child with the best child insurance plan should be a preferred task. More so, because of two primary reasons:

  1. The rising cost of career-defining education
  2. Rising uncertainty with future marketplace

These are the two challenges of your child’s future which you try to resolve early on and create a plan to support the dream at least financially. Child education plan calculators are useful and simple to use online tools which can help you plan your goal better.

Inflation in education costs is one of the highest in a fast-growing economy like ours. So, financial preparation is a must.

Child Plan Calculator

1 Yrs 25 Yrs
*Please Modify the figure, if required
16 Yrs 35 Yrs

When your child turns 0, the cost of becoming an Engineer will be

Your current savings will grow to

0
[No canvas support]

You will need an additional amount of

0

Amount you need to invest monthly

0

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What is a Child Plan Calculator?

Child education planning calculator is a free-to-use online tool. The calculator will help you determine the cost of the educational course you are planning for your child and how much you need to save to achieve it. Remember, the earlier you start, the better it is.

Know when to start investing in a savings plan for your child.

Child education planning calculator is a tool, meaning, the cost numbers are as accurate as fed to the calculator. So, for a more accurate estimate of your child’s goal, you can change the current educational cost for a course or institution you are aiming for.

The calculator eases your burden of the mathematical task associated with planning a goal financially so that you can simply move on to the investment. You can start investing the calculated monthly savings amount in any of the plans available at the end.

How to Use Child Education Plan Calculator?

Follow these 5 steps to use the online calculator on Canara HSBC Oriental Bank of Commerce Life Insurance that will assist you to chalk out your child education plan:

  1. Choose the current age of your child. You can use the slider to select your child’s current age between 1 year to 25 years
  2. Select the appropriate course you want to plan for your child’s higher education.
  3. Check the current cost amount. You can change this figure to the one more appropriate for the institution you are aiming for.
  4. Move the slider to select the age when your child will need the money to pay for the course/education. You can choose an age between 16 years to 35 years.
  5. Now you can mention the value of your present investments dedicated towards this goal.

Calculate: When you press ‘Calculate,’ the calculator will give you the following figures:

  1. The total cost of the goal adjusted for inflation
  2. Value of your present investments for the goal at the time of goal achievement. (The calculator also reveals the assumed growth rate for your present investments. This rate is based on the expected long-term rate of interest possible under the present market situation in the country. You can change this rate to suit your expectations.)
  3. The additional amount you need to accumulate for the goal
  4. The monthly sum of money you need to save to fill this gap

The calculator shows you how close you are to fulfilling your goal with your present investments. So, you can use the calculator to estimate whether your ongoing child education plan is sufficient or not.

Here are 5 insurance plans to secure your child's education expenses.

How Do Child Education Planning Calculators Work?

A child plan calculator is an online tool designed to help parents to determine the funds required to fulfil the life goals of children. The child plan calculator arrives at the monthly investment amount by considering factors such as investment duration, inflation, education cost etc.

The calculator considers the following factors to generate your child’s education plan:

  1. The time to a goal (Your child’s age at the time of beginning the higher education – child’s current age)
  2. The current cost of higher education course
  3. Your present savings for the goal
  4. Rate of interest on your present savings and expected inflation rate for the educational cost

The education plan calculator will estimate the cost of the course when your child will start the education (future value of the goal). The calculator also estimates the value of your current investments for the goal.

If your current investments are sufficient to meet the goal’s future value, the calculator will show zero for the monthly savings need. However, if there is a gap you will get a number for the monthly amount you need to start investing towards the goal.

Assess Your Current Child Education Plan

The calculator can also be handy to assess your child's education savings from time to time. You can simply estimate the values based on the real numbers for current investment and expected growth rate.

If the calculator gives you a monthly saving amount that is less than or equal to the amount you are saving regularly, you are right on the way to achieve your goal.

If not, you can increase your investment to fill the gap before maturity.

Read whether you should depend on an education loan to fund your child's dreams?

Benefits of using Child Education Planning Calculator

A child education planning calculator is designed to simplify your child’s higher education goal using real-life information. For example, your child’s age and your present investment value for the goal. Some of the most prominent benefits of using this calculator are:

  1. Free of cost and simple to use
  2. Real-time estimates
  3. Considers real-life inflation factors for estimating the future value of the goal
  4. Gives you the balance amount you need to invest for filling the gap
  5. You can start investing the full amount or a part of it immediately
  6. You can assess your ongoing child education plan
  7. Compare different scenarios, i.e., domestic education vs foreign institutions

FAQs

A child plan calculator helps you to assess the financial requirement for your kids’ higher education. You can find out how much you need to invest every month in the best child insurance plan to build the required corpus. Also, it helps you in determining the duration of investment, expected rate of return by taking inflation into account. Calculating the required corpus using a child plan calculator is an efficient way of having a clear idea of how much you need to invest.

A child education plan offer tax benefits on both premiums paid and policy benefits received on maturity and throughout the policy term. Section 80C of the Income Tax Act allows tax deduction on the premium you pay for a child education plan up to a limit of Rs.1.5 lakh. The benefits obtained during the policy term and at the end of the policy period are tax-free under Section 10(10D).

Child education cost in real terms is the amount of money you will need in the future when your child starts his/her education. So, if you want to plan for an MBA from a top Indian institution for your child, you need to consider the current cost of the course there.

This current cost will be inflated for the period available for the goal at the prevailing inflation rate. So, a course which costs Rs. 10 lakhs today may cost about Rs. 21 lakhs in 15 years if the applicable inflation is 5% p.a.

Higher education for your child is one of the largest financial goals in your life. Also, you get less time to save and invest for the goal, i.e., 10-15 years. Thus, you can start investing about 10% of your income towards this goal if you have not fully planned the goal.

However, you should try to use an online child education calculator to expedite your planning effort and check if 10% of your income will be sufficient.

Although you can invest in several long-term investments, child plans from life insurance companies could be a better option. Public Provident Fund (PPF), equity-linked savings schemes (ELSS), etc. are long-term investments that will also give tax benefits.

But these saving schemes will need continuous investments from you to help your child achieve his/her education goals. However, a child plan goes a step further and apart from all other benefits, provides safety to your child’s goal in your absence.

Child plans from Canara HSBC Oriental Bank of Commerce Life Insurance ensure that all due premiums are invested in the life insurance policy in case of your early demise. Thus, your child’s goal remains safe with you and even without your presence.

First, you should try to understand the several expenses associated with the education you have planned for him/her. Usually, higher education expenses include the cost of accommodation, lifestyle expenses, and commutation costs along with the tuition fees.

Once you have arrived at a number for the total expected expense, you can use a free online child education calculator to estimate your monthly savings amount.

Learn how to build an education fund for your child.

Life insurers provide child education plans which are special investment options designed to help you meet your child’s important life goals. Child education plans not only offer an investment venue as per your risk appetite but also offer safety for your child’s goal.

Child education plans from Canara HSBC Oriental Bank of Commerce Life Insurance enable the insurer to continue investing the due premiums in the plan if you cannot be there to fulfil the goal. Your child will receive the money as per intended maturity.

Child education plans are life insurance plans with features to safeguard your child’s higher education goal. You have the option of investing in two types of child education plans – Unit linked child plans (ULIP child plans) and Guaranteed Savings Plan.

ULIP child plans give you the flexibility to invest aggressively and manage your portfolio. A guaranteed savings plan also called endowment or money back plan, will offer guaranteed maturity value. Both plans offer life cover and goal protection features.

The best investment plan for a child is one that allows the saved money to beat inflation, taxes, and possibly the risk of your early demise. Life insurance child plans are some of the most versatile saving plans you can use for your child. These plans offer multiple investment options based on different risk appetites and protection for the child’s goal.

College education for undergraduate levels can cost up to Rs. 20 lakhs today depending on the institution and the type of the course. Thus, if you plan to provide such education to your child 10 – 15 years later, you need to start saving now.

Use the child education plan calculator to estimate your monthly saving need for the goal and start investing in a plan of your choice.

Education and marriage are two different goals for your child. While education may cost a large sum of money over a few years, marriage is a one-time expense. You will need to start saving and investing for both the goals as early as possible, usually at childbirth.

Keeping both investments separate will be more practical as you approach one goal after the other. While marriage expenses can be budgeted, education may need additional funds or may even work without using the entire amount.

So, use the child education planner to plan for your child’s higher education goal, and marriage goal separately. Save and invest the respective amounts in two different plans for easier management in the future.

Child plans are better suited to achieve your child’s future goals, as they offer financial safety options for the goal along with the investment growth. Thus, you should prefer child plans if financial safety is a concern you need to address for the goal. Otherwise, you can use any other long-term investment options and ULIP plans to save for your child’s goal.

Terms & Conditions

This calculation is generated on the basis of the information provided and is for assistance only. And is not intended to be and must not alone be taken as the basis for an investment decision. The calculations mentioned above take into consideration an assumed rate of inflation of 8%. The current costs of education mentioned above are approximate values. The end value displayed is on the basis of the information provided and is for assistance only. It is not intended to be and must not alone be taken as the basis for an investment decision.

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