5 essential steps to secure your child-related goals

All parents want the best for their children' is a centuries old truth. For Indian parents this is by providing them with the best education, confirms a survey done by Scripbox. The best part about saving for your child's goals is that you have ample time in hand to invest and reach your goal. However, its easier said than done. Throughout this long term, you being a parent, should stay calm and not get triggered by the short term volatility in your investments. Also, only if you stay disciplined, and continue to stick to your investment plan, you will be able to accomplish your child-related goals in time. Here are the five essential points to keep in mind before you start saving for your child.

You must know the purpose you wish to save and invest the money for. Don't just start randomly. Your goal should be clear in your mind. It could be an international school admission or a professional degree at a university. You would also need to give a clear amount to your goal. How much you want for your goal.

"Work backwards while planning for the amount required. For a private college education in India, the fee over the next decade can be anywhere between ₹8-15 lakh for the entire graduation course and a similar amount reaching up to ₹25 lakh or so for post-graduation. After accounting for a 12% escalation in annual education cost, it is an expense of around ₹14 lakh on an average and upwards. This means you need a sum upwards of ₹4.5 lakh each year for three years to fund higher education. In addition, factoring in a yearly increase, recommend upping the yearly investment amount by 5-10%," says Atul Shinghal, founder and CEO, Scripbox.

Start early and try to save more
Once you know your goals, set aside some money for this goal before you spend the rest. Don't show lazy attitude ince you have a lot of time in hand. Start saving as early as possible. It is important to get into a good saving habit every month as the stepping stone to secure your child's future.

Start with SIPs in mutual funds
As a young parent, you might have other responsibilities and expenses. You can always start with a small amount as soon as possible. You can start with as little as ₹500 every month. Start investing through systematic investment plan (SIP) in mutual funds. SIPs help you use 'rupee cost averaging'. This means you buy more when prices fall and buy less when prices rise.

Use SIP top-up
Once you are comfortable with managing your expenditure, as your income grows, you can boost your allocation to SIPs by using the SIP Top-up. This increases the amount you set aside each month for your child's future. A timely boost every month can make a significant difference to the final amount you receive when you need it. Most mutual fund houses allow the Top up option.

Do not stop investing
You must continue your monthly investments till you meet your goals, unless there is no other option left. The more you stay away, the more you hurt your prospects of reaching your goals on time. Also, review your portfolio once a yer to move out of any bad performing investments and to stay on the course of your investment journey.