Bengaluru: Amit Thakur used to work for a software firm, took early retirement to pursue his hobby of wild life photography. Due to the frugal lifestyle, he maintained throughout his job life, Amit thought, he has saved enough for his daughter’s higher education.
“Last week after I paid for my daughter’s second term fees, all my savings marked towards her education is over. She is in UKG right now, I am confused, what am I going to do now”, said Amit while speaking to us.
On the planning he did, Amit said, “Six years back before Ananya (his daughter) was born, I sat with one of my friend who is a financial planner. We checked all the schools in the vicinity of my area. Ignoring the high end international schools where parents drink their morning coffee in Starbucks, most of the other schools were in my budget”.
Amit added, “We used an excel sheet and putting standard inflation of seven percent, found with the corpus I have, Ananya can clear her 12th standard. Uska aage dekhenge what she wants to do in life, accordingly my plan was to apply for an education loan for her.”
“The school that was charging 40k six years back, ask for 2 lakhs as school fees today. School bus, uniform, books and whatever else happens at school, you have to pay for it extra. If this is the level of education inflation, I should have used 30% not 7% while calculating compounding cost,” said Amit on his lack of ‘foresight’.
Amit went to a neighborhood bank whose agents call him every day with tempting loan offers. “When I asked for loan for her standard one admission fees, they laughed at me saying, standard one ke liye education loan nahin milta hai,” said Amit who has uploaded his CV to different job portals.
Amit faltered in his financial planning. Remember If your kid is in play school, mark few crores for his or her ‘full’ education.