The primary responsibility of any parent is to provide their children with top-quality education and other necessary monetary support to be successful in the future. Raising a child in the complex world today is highly challenging. However, you can always opt for a child saving plan to ensure your child has the best opportunities according to his capabilities.

Choosing the best savings schemes can be overwhelming as it includes multiple factors like goals, budget, financial requirements for the child in the future, etc.   

This blog will discuss how to choose the best savings plan for your child’s education.  

How to Select a Savings Plan? 

Analyse the Education Period

Before you begin choosing a savings plan for your child’s education, analyse the predicted period for the child’s education. For example, if your child is 10, his higher education will begin when he turns 16, giving you six years to plan and invest. The goal is to start early to give your child the best benefits. 

Assess the Cost of Education

Using the same example above, considering the potential inflation rate, the different higher education fees, including tuition, travel, etc., and additional expenses are crucial. Therefore, researching the cost of education and factoring in inflation is necessary. 

Calculate Current Financial Capacity

Along with your child’s education, multiple other financial debts and liabilities must be handled. You need to look into your current financial capacity and liabilities to decide how much money you want to invest and save for your child’s future. This knowledge will help you with better fund allocation and budgeting. 

Choose Investment Plan

Multiple savings plans are available in the market today, providing advantages to the investor or policyholder. Investing in a savings plan can offer you a list of benefits, including financial protection, life insurance coverage, different tax benefits, and much more. All you need is clarity on your goals and an understanding of risk-taking ability to choose the right savings plan. 

Options for Savings Plan for Children’s Education

As mentioned before, many investment and savings options are available to support your child’s education. Let us discuss the top options below. 

Government Policies

Children’s education is crucial not just for the parents but also for the government of India. For the same reason, a list of different schemes is available for the children to avail benefits for a better future. One such scheme is the Sukanya Samridhi Yojana, the National Savings Certificate, the Balika Samridhi Yojana, etc. 

Insurance Plans

Multiple insurance policies help you secure the financial future of your child. Some policies offer death benefits to the policyholder’s family, which can support the children’s educational goals. However, a child’s higher education plan and other categories also exist under insurance plans. 

You can choose a ULIP Child Education Plan, which is a market-linked financial instrument that manages your financial portfolio for you based on the movements in the market. Under this insurance category, the nominee receives a death benefit lump sum after the policy’s maturity. You can also choose between debt and equity or both based on your risk tolerance.

Other than this, you can invest in Equity Mutual Funds, Money Back Child Savings Plans, and Children’s Endowment Policy. The critical thing to remember is to research well and understand the different features of each of these insurance plans before making the final decision. 


Choosing a savings plan to invest in for your child’s education is a tough decision. However, with the proper knowledge and awareness about the available options, you can easily research and find the best fit. 

Always remember to define your goals, risk ability and financial capacity before exploring different saving instruments and creating a plan for the future. It is always better to start early investments in your child’s education, so start today!


Sumit is a Tech and Gadget freak and loves writing about Android and iOS, his favourite past time is playing video games.

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