Calculators

Child Education Planning Calculator

A child education plan calculator can help navigate costs, inflation, and changing needs from early childhood to higher studies.

A child education plan calculator can help navigate costs, inflation, and changing needs from early childhood to higher studies.

What is a Child Plan Calculator?

A child plan calculator is an online tool that parents can use to estimate how much money their children will need to achieve their life objectives. It determines the monthly investment amount by considering variables like the length of the investment, inflation, the cost of education, etc.

The calculator generates an indicative figure based on the concept of future worth for their needs. It enables you to consistently choose an appropriate amount to save for your child's financial security.

Table of Content:

Child Education Calculator

A smart online tool that helps you easily navigate the costs of your child's future education, ensuring their dreams come true.

1 About my Child Step Right Caret Icon
2 My Child’s Dream and Needs Step Right Caret Icon
3 Additional Details Step Right Caret Icon
4 Our Recommendation
About my Child My Child’s Dream and Needs Additional Details Our Recommendation
My name is {name}
my mobile number is {mobile}
You start investing when {name} age is: {initialAge} years
Maturity amount received by {name}
{name} becomes an {career} Professional
For {name} Education as: {career}
You should start saving
{maturityAmount}
For remaining {remainingYears} years
To create a sum of {totalamount}
View Plans
*Disclaimer-

The above calculation and illustration of figures are indicative only and not on actual basis.

About my Child
My Child’s Dream and Needs
Additional Details

Why Is It Important To Use A Child Education Plan Calculator?

The purpose of a child education plan calculator is to assist you in achieving this lofty financial objective for your child. With the calculator, you can quickly proceed to the investment by relieving yourself of the mathematical work involved in financial planning.

The following arguments demonstrate why these plans are now essential and how a calculator helps you make informed decisions about them:

Inflation in the field of education is evident. In 15 years, the cost of a prominent management degree from one of the best universities will likely reach approximately ₹1 crore, even with annual inflation of 2.5%. The calculator helps you understand the exact values you need to invest and reach the goal. With a certain amount of protection, you can invest in equity with a well-thought-out child education plan.

The biggest threat to the dreams of your family and children is your permanent absence. Fortunately, insurance products such as term insurance can help you ensure financial stability. It will be helpful for your child's goals, even if they differ from your expectations. 

Student loans are a practical option to fulfil the study goal because of the tax benefits. However, whether or not you obtain tax benefits, you must still pay interest on your student loan. Also, because work and income are unpredictable after college, your child may start a position that carries a lot of liability. A child education calculator computes the values you need to invest and will have after the investment. It saves you from unforeseen shocks that can cost your child’s dreams.

How to Use a Child Education Plan Calculator?

You can use the Canara HSBC Life Insurance online calculator by following these steps to assist you in making educational plans for your child:

  • Choose the current age of your child. The slider allows you to select your child's age from one year to twenty-five years.
  • Choose the appropriate higher education course for your child to enrol in.
  • Check the current cost of the course.
  • Use the slider to determine your child's age to pay for the study or course. You can choose between 16 and 35 years old as your age range.

After you click the "Calculate" button, the calculator will show the following numbers:

  • The overall cost of the target adjusted for inflation.
  • Value of your existing goal investments when the objective is reached.
  • The additional amount you need to accumulate to accomplish the goal.
  • The monthly amount that you have to save to make up this difference.

You can use the child calculator to see how close you are to reaching your goal with your present investments. You can use the calculator to determine if your current education plan is sufficient.

How Do Child Education Planning Calculators Work?

An education planning calculator evaluates the cost of the actual goal and your progress towards it. The child calculator considers various factors at once and works in multiple steps to give you a number you can use to buy the best child insurance plan.

The calculator considers the following factors while generating the education plan for your child:

  • The amount of time to the goal (Your child's age when they started their higher education - your child's current age)
  • The current cost of a higher education course
  • Your current savings towards the objective
  • The interest rate on your current savings and the anticipated rate of inflation for the cost of schooling

When your child begins school, the education plan calculator will calculate the approximate cost of the course (future worth of the objective). It also calculates the estimated worth of your present investments for the target. If your existing assets are enough to reach the goal's future value, the monthly savings required by the calculator will be zero. If there is a difference, you will be given an estimate of how much you will need to start investing each month to reach the target.

Illustration

Sameer has been saving money for his daughter's college education and marriage, who is five years old. For the next fifteen years, he intends to put ₹10,000 a month in a child savings plan that has a ₹12 lakh life insurance policy.

 If Sameer survives the policy term

As per the child savings plan, Sameer is eligible to earn the maturity benefit. The fund value will be the sum of his investments in the child plan, including any bonuses. He can either get the lump payment or convert it into a regular payout, depending on the kind of child insurance plan.

If Sameer dies during the policy

The death benefit will go to Sameer's daughter if he doesn't live out the policy term. The value of the fund at the time of death will be less than the insured sum. The child investment plan would have continued upon payment of the death benefit if he had chosen the premium protection benefit. Following the plan's expiration, his daughter will receive the maturity value.

Begin securing your future

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Enter Valid Mobile Number Enter Your Mobile Number
Enter Valid Email Enter Your Email
Consent is required

Application Status

Name

Date of Birth

Plan Name

Status

Unclaimed Amount of the Policyholder as on

Name of the policy holder

Policy Holder Name

Policy No.

Policy Number

Address of the Policyholder as per records

Address

Unclaimed Amount

Unclaimed Amount
Error

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Benefits of Using the Child Education Planning Calculator

A child education calculator helps make your child's higher education objective more manageable. The following are a few of the main advantages of utilising this calculator:

  • It is easy to use and free of cost.
  • It estimates in real-time.
  • It considers actual inflation effects when projecting the goal's future worth.
  • It computes the remaining amount you must invest to close the difference.

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FAQs Related to the Child Education Planning Calculator

The education plan calculator will estimate the future value of the course/goal. The formula used is Future Value = Present Value (Expected returns+Rate of interest) *N where 'N' is the duration of the time of the investment required.

A child plan calculator helps you to assess the financial requirements for your kids’ higher education. You can determine how much you must invest monthly in the best child insurance plan to build the required corpus. It determines the duration of investment and expected rate of return by considering inflation.

A child education plan offers tax benefits on 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 ₹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 is the money you will need when your child starts his/her education.

This current cost will be inflated for the period available for the goal at the prevailing inflation rate. So, a course that costs ₹10 lakhs today may cost about ₹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. 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.A child plan goes a step further and apart from all other benefits, provides safety to your child’s goal in your absence whereas the other saving schemes will need your continuous investments to help your child achieve his/her education goals.

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

Life insurers provide child education plans and special investment options designed to help you meet your child’s important life goals. Child education plans offer an investment venue as per your risk appetite and safety for your child’s goal.

Child education plans are life insurance plans with features to safeguard your child’s higher education goal. You can invest in two types of child education plans – Unit-linked child plans (ULIP child plans) and Guaranteed Savings Plans.

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 savings you can use for your child. These plans offer multiple investment options based on different risk appetites and protection for the child’s goal.

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. 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. 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 investment growth. Thus, you should prefer child plans if financial safety is a concern you must address for the goal. Otherwise, you can use other long-term investment options and ULIP plans to save for your child’s goal.

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