Ernakulam-based A. Azad, 58, who used to work as an engineer in West Asia, had to sell some land he had in Delhi and dip into savings to meet his children’s needs. “For our son Ismail’s education, we had to sell our land in Delhi. And for our daughter, Ilham’s higher education (on part-scholarship), we used some of our retirement money. She studied in a British school, and it was difficult for her to get admission in a college in Kerala. So, she went to England,” said Azad. IIham has completed her engineering course and is now looking for a job.
Azad has a Master’s degree in Business Administration and is well versed with the basic principles of financial planning. But he didn’t use this to plan better for his children. Even for their marriage, he plans to sell some of the land that they have in Kerala.
Children’s needs are among the most important and mostly non-negotiable financial goals. But if you don’t start planning when they are young (or even earlier), you will be forced to dip into other savings. But how much to save, and for what? The answers are a matter of making accurate assumptions and calculating from there. Here’s how.
