Tips for Parents to Save on Their Child’s Education

During this lifetime of a parent, probably the most important phase comes at the time of the child’s education. Quality education is very important for the upbringing and future of the child. We all know this; the importance of education is not something we need to talk about. But getting a quality education has become increasingly difficult in the past few years because of how expensive it is now. Hence, here are some ways parents can save on their child’s education.

1) Avail income tax benefits on tuition fees. Annual tuition fees paid for two children is tax deductible under Section 80C up to ₹1.5 lakh.

2) Plan early for higher education. Stay prepared for college and university fees by starting an SIP in an equity mutual fund and benefit from the power of compounding.

3) Open a Sukanya Samriddhi Account for your daughter. This is a small savings investment option that helps you save money for your girl child and also avail income tax benefits.

4) Buy second hand books. Certain reference books and entrance test material is expensive and used only once. You can buy these books in second hand to save money.

5) Compare before selecting an education loan. Different banks offer loans at different rates. Make sure the EMI doesn’t hike up the total cost of the loan over the long-term.

A detailed version of this article was published in Money Control on 1 June 2017.

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