Most of you donot plan the cost of your child's school fees.
Without proper financial planning,you tend to swipe your credit card to finance your child’s school fees thinking it to be a minor financial liability for you. But if you see the broader picture, you
will be horrified. As because, you will need to pay an interest of up to 3-5% monthly for your credit card bills. This can be yearly 36%-60%.
So, to avoid such financial burden, start planning your investment with our School Fees Registry today.
Our School Fees Registry is a SIP based investment and expense management tool which will guide you to plan for your child’s better future.
The increasing cost of a child’s education is affected mainly by- lifestyle that you follow, inflation, increasing demand from the parent’s perspective and good quality education and school. The more you demand a quality
ducation for your child, the more you need to pay for the school fees.
But if you estimate the school fees based solely on the tuition fees, then you are ignoring other important
components of school fees. It has been estimated that, the tuition fee comprises only 35%-55% of the school fee. Around 55%-75% of your schools fees are spend on the portions which are not easily noticed.
So, let’s take a look on the major components of school fees which piles up the cost.
Often we consider tuition fees equivalent to school fees. For educating your child,tuition fee is the basic fee that any school charges. As your child gets promoted to senior classes, the
tuition fee also starts increasing. Generally, tuition fee is levied either monthly or once after every three months. It is the biggest part of school fees, which is around 35%-55% annually.
Admission Fee/Re-admission Fee
Around 6-9% of the school fee consists of the admission and re-admission fee. At the start of each academic year, admission fee is levied by the educational institutions. When your
child is newly admitted to a school or if he enters class 11, the school levies this fee. But most of the schools levy the admission fee every year at time of admission/re-admission.
Uniform, Books and Stationary items
Books, uniforms and other necessary stationary items are the basic expenses which are approximately 16-21% of annual school fees. Most of the times, you are required to buy these necessities from
the school specified shops. So, you are left with no space to negotiate and shell out the specified amount.
When educational institutions are in the initial 20 years of their establishment years, they spend to set up- new buildings for higher classes, extending lands, Sport ground, auditorium, laboratories, library room
etc. To cover up these costs, generally schools transfers this cost on to the parents commonly known as infrastructure fee. Most of the schools levies these costs at the start of academic year which is approximated around 6-11% of the school fees.
To facilitate the child with computer lab, science lab etc, and the school levies laboratory fees.This fee is approximated to around 4-14% of the total fee annually.
Every month you need to incur the transportation cost. With the rise in fuel prices, the cost of transportation is increasing simultaneously. Adding up to the education expenses, the transportation cost contributes around 13-19% of the annual school fees.
Co-Curricular Activity Fees
To expose your child for an overall development apart from class room coaching, schools organizes different co-curricular activities. For that they charges activity fees which is up to 6% annually and is levied at the start of the academic year. Some of the activity fee comprises of- annual day, sports day, excursions etc.
So, now you are pretty much clear about the school fees and its components. All together school fees costs a lot.
But if you start planning today with our School Fees Registry and invest in suitable mutual fund schemes via SIP,
then you will be saving for your child’s school fees for the next upcoming years in advance. In this way, you will
be able to give your child the best education but with no stress for the school fees.
School Fees Registry guides you with your financial planning of your child’s school fees. It helps you as to how much you should start saving now so as to you don’t feel any burden.
Plan your finance today with our School Fees Registry and build your child’s future.
Here are some of the benefits that you will enjoy with School Fees Registry-
- It helps you to develop a habit of regular investment.
- You will enjoy the facility of compounding with regular investment.
- For paying the school fees, you don’t have to pay a huge sum at one go.Start investing in SIP where you need to pay a small amount of money at regular interval for a specific time period.
- If you start investing, then you will enjoy the facility of rupee-cost averaging where your investment does not get affected by the market volatility.
- You can invest a minimum of Rs. 500 every month, so by the end of the year, you will get the best return which will cover your child’s school fees.
- One of the best benefit is there is no specific lock-in period. You can easily take the money,when it’s needed. But to get the best return, you should keep investing for a longer time period.
- With the habit of investment, you not only yield a good return, but you also enjoy tax benefit under Section 80C of Income Tax Act.
From the above discussion, you can easily figure out as to why you should plan today for your child’s school fees. Now, focus on how to plan and invest. Don’t worry. FreEMI is there to help you out. Our School Fees Registry is a one of
a kind automated platform which executes your child’s education expenses and evaluates a probable SIP which will give a handsome return against your invested money. Log in to FreEMI Registry and we will help you to plan your investment.
school Fees Registry guides you to brighten up your child’s future, without any financial burden.