How to Plan Your Child's Education - A Step by Step Guide

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

How to Plan Your Child's Education - A Step by Step Guide

 How to Plan Your Child's Education - A Step by Step Guide
  • 26th Apr 2022 |
  • 2,866

Starting early is the key to building a significant education fund for your children. Along with an early start, diversification of your investment portfolio is also important so that you do not miss out on the financial goals you have set for your children’s education. The sooner you start investing in your child’s education fund, the larger the corpus will become and help your child fulfill their dreams without financial woe.

Easy to Follow Steps to Plan your Child’s Education

Planning education finance, especially for your children, can be a tough task and, at the same time, a highly tricky move. You are unaware of various factors that might influence the education of your little one in future years. However, the best you can do is save enough for your children’s education so that they never have to compromise on education and educational choices due to financial problems in the future.

1. Assess where you stand financially

It must be clear that it is not wise to invest if you are cutting costs from your basic needs like food, shelter, and other necessary expenses, including health and medicine.

Thus, it is important to analyze where you stand financially. It is suggested to take out an estimate of your income and all the current and future assets. Once you know your financial resources, you can plan your next move accordingly without compromising your present goals.

2. Finalize a corpus amount

Once you know your current financial status, you can easily finalize the corpus amount you want to secure for your child’s education based on the current inflation rate. Once you have considered all these factors, it’s time to identify your child’s financial requirements based on his current age and what he will require in the future.

How To Plan Finances for Your Child's Education - A Step by Step Guide

3. Have a plan of action in case of parental absence

With the pace at which the world is moving today, we have no idea what comes next. Thus, experts advise that a plan of action must be ready for your child in case of your absence or an untimely demise.

Many investment options can lure you towards them for planning education finance. However, plans like ULIP are highly flexible and will help you set a firm plan of action for your child’s education finance.

4. Opt for a child investment plan that offers the best returns and multiple benefits.

Once you are clear about your current financial status, your financial requirements, and your child’s financial requirements, it is time to choose the right investment option for your child.

Education planning/financial planning is a little tricky. First, you will have to choose a suitable child insurance plan like ULIPs that cater properly to your children’s educational needs. In addition to this, ULIPs also offer waiver premiums in case of parents’ demise. The only thing that you need to understand is that your investment is going in sync with the market trends and their growth.

We all know that from primary school to college, education costs are soaring to new heights every day. The above-mentioned important steps will help you efficiently plan education finance for your child’s future, even in your absence.

Kotak e-Invest

In this policy, the investment risk in the investment portfolio is borne by the policyholder.


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Who Should Invest in Savings Plan?

Why ULIP is Better Investment for Long-Term Wealth Creation?

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

ULIP Plan as a Gift

4 Benefits of ULIP Fund-Switching Feature

What are the Best Investment Options for Beginners or Amateur Investors in India?

How Much Wealth Can You Create from ULIP in 10 years?

How to Increase Net Worth Along with Family Protection

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

What are the Best Short-Term Investment Plans with High Returns?

Different Types of Endowment Plans

Planning Financial Goals and Objectives of Financial Planning

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Top 6 Investment Plans Available in India

Best Long-Term Savings Plans in India in 2022

ULIP Benefits You Can Avail from Early Investing

Short Term and Long Term ULIP Plans for Wealth Creation

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

Why Should Parents Invest in Endowment Plan?

Planning for Your Child's Higher Education? Explore These Investment Options

What are the Best Investment Options For Females?

What are Mutual Funds?

Early Investing and the Power of Compounding

Important Questions You Must Ask Yourself When Buying a ULIP Plan

ULIP vs FD - Which is Better and Why?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

Investments Options to Buy a house in India

Customising investments to manage your wealth

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Importance of Portfolio Management

Learn About Safe Investments with High Returns in India

Best Investment Options to Cover Your Child's Education

What are Deferred Savings Plans?

Difference Between Passive and Active Investing

Which is a Better Investment - Mutual Funds Or ULIP?

What are Some of the Safest Investment Options in India?

Receiving regular payouts at various stages of life

What is better - Guaranteed Savings Plan or Fixed Deposit?

How to Start Saving Money in 10 Simple Ways?

What are the Best Investment Options for Young Adults?

Why Should You Invest in Term Insurance And ULIP?

Why Do You Need A ULIP Plan - All You Need To Know

What are Tax-Deferred Savings Plans?

Best One-Time Investment Plans in India

Are Gains from ULIP Sale Taxable?

Complete Savings Plan for Low Income Earners

3 Tips to Buy Guaranteed Savings Plan

How to Fulfil Your Financial Goals in the Next 10 Years?

Investment Options for NRIs in India

How to Manage Your Portfolio Like a Professional?

Difference Between Guaranteed Savings Plan and ULIP

Things to Know Before Buying an Endowment Plan

Do You Know the Difference Between Savings and Investment?

How to Manage Inheritance Money?

How to Plan your Investment to Achieve Periodic Financial Goals?

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Top 5 Principles That Need to be Followed for Wealth Creation

Asset Allocations in ULIP - Know the Top Benefits

How To Track ULIP Performance?

Top 10 Investment Strategies to Create Wealth

Best Investment Options in India in 2022

Building wealth through regular investing

How Does an Endowment Plan Work?

Savings Plan for Grandchildren

Are Money Back Policies Helpful? A Complete Guide

What is a Savings Plan and What are is Benefits?

Factors Affecting Stock Markets

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

Top 5 Investment Options in 2022 for Healthy Returns

What is the Importance of Saving Money?

How to Plan Savings from Salary?

How Do One-Time Investment Plans Work?

How to Make Your Financial Portfolio?

Learn About Safe Investments with High Returns in India

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

4 Important Tips to Maximize Gains with ULIP Investments

Is This The Right Time To Invest In ULIP? Why or Why Not?

Creating a second source of income with life insurance

What is ULIP Renewal?

Successful Financial Planning for Urban Women

What are the Best Investment Options for Students in India?

How To Diversify Portfolio In 2022?

How to Cancel ULIP Policy?

Endowment Plan vs Fixed Deposit?

Safe Investment Options with High Returns for FY 2018-19

ULIP as an Investment for Your Child

How is Compoud Annual Growth Rate (CAGR) Calculated in ULIP?

Basics of Guaranteed Savings Plan

Benefits of ULIP as a Child Insurance Plan

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

Can ULIP Help in Achieving Short-Term Financial Goals?