With the approximate number of years in mind, you can decide the time horizon.

Keep in mind the National Education Policy while calculating the years to your child’s graduation and post-graduation.

Factors include:

1. Do you want your child to have global exposure and education? or
2. Do you prefer to have your child remain closer to home?
3. Do you want your child to do graduate and post-graduate courses?
4. Finally, what is the likely overall cash outflow in either option?

And while calculating the total expense, it is important to determine the future cost of high school or college or the post-graduate course.

Assume charges of ₹ 20 lakhs today and your child will likely attend it in 10 years from today — @ 8% annual inflation, the fees would be ₹ 43.17 lakh. To achieve this financial goal, you need to invest in a product that can give you annualized returns of 8% during this period of 10 years

You can choose to Invest

1. ₹ 23,818 (Monthly), or
2. ₹ 2,75,981 (Yearly), or
3. ₹ 20,00,000 (Lumpsum)

List down all your assets and liabilities to know where you stand today to plan accordingly.  This can help you plan better. Ensure that the amount ear-marked for your children education is not compromised and used for other goals and vice versa.

Once you know the approximate cost of education. Decide how much you need to save now, or a monthly contribution required to achieve this goal on or before time.

The easier way is to put aside some money towards each goal in a systematic manner. Save and invest regularly so that you don’t have to take loans, which can prove to be a costly proposition in the long run.

Smartest way of investing is by designing asset allocation and investing accordingly.

Ensure that you have enough life and health insurance to at least cover the tuition fees of the school and college your child will possibly attend.