A very good and relevant question...not sure why there are no answers! :)
This is something my husband and I discuss very often. We have not reached any figures regarding target, but are keeping aside my full salary(both of us work) as savings.
And a big YES to planning for retirement right now!
I have a plan
Do onething save some money in FD(fixed deposit ) with montly intrest for example 1,35000 give 1010 montly interest with interest rate of 9%. in the same way if we save around 8 to 9.35L means overall 6K to 7K will come as montly interest for year it becomes 72K to 84K ok so once you save that amount means every year with that interest you can pay the school fee. :D
Every year you have to submit form 15G to banks inorder to avoid cuttings from you interest. once save life long no tension to pay the fee.
Very informative thread, thank you all.
Can anyone throw light on what percent of one's family income can be spent on schooling, every year? Any information would help me choose a school for my children.
You can open a PPF account in the child's name and start saving in taht account. Interest rates are always higher than bank-rates. Additional advantage is taht you cannot withdraw the amount till 15 years as PPF has a lockin period. I'm saving about 2k everymonth in my child's PPF acount.
oh that's really a good news. what is PPF account and which bank offers this?
PPF means public provident fund state bank of india and icici bank have this facility and now u can transfer online also
Hi shilpa thanks for this information regarding ppf account.
shilpa could you please give the complete details of ppf
Hi, There is a scheme called Sukanya Samridhhi Account recently implemented by our prime minister Modi. You can go to post office and check for details on this. Interest rate is 9.1% pa. This can be opened for only girl child.