It’s back to school time – Plan for a successful new academic year

2 months of fun time and vacationing are slowly coming to an end. It’s time to get new uniforms stitched, new books covered, and new pencils sharpened. A new school year begins. Parents have mixed feelings about the beginning of every academic year. On one side they are relieved that the kids are finally going back to school after 2 full months of mischief making! On the other hand they are anxious about the future of the kids and want to give them the best education they can afford.

Investing in a child’s education is probably the best investment we can make in their benefit. Buying property in their names or investing in gold are not sure guarantees for a happy, prosperous future. But a good education can provide them life-long assurance of good employment and a secure future. Quality education helps them fight any challenges that life may throw at them.

One of our most important financial responsibilities is saving for our kid’s education. Going by the rates of school fees in good city schools, the investment per year is over a lakh of rupees per child, every year. That’s a lot of money. And it only gets bigger as the kids grow up!

Most parents in middle class families put their money into fixed deposits or mutual funds to set aside for paying the school fees year on year. But these instruments are volatile, they may yield varying returns depending on the government’s current monetary policies.

We suggest to try chit funds instead. It’s a simple and perfectly suited alternative. When the quantum of expense is known and the time is also fixed, chit funds turn out to be the best available option. You can put in a monthly instalment for a tenure of 25 months, and withdraw the entire accrued amount exactly at the time you need it. No need of taking loans and paying interest, this money is entirely your own!

Consider this formula. Let’s say you started 2 chit funds, one last year and one the year before that, around the month of April-May. The scheme started 25 months ago will mature now, just in timefor paying this year’s fees. After closing that scheme, you can start another one immediately. This way, every year, there will a scheme maturing and you will be building a corpus for school fees year on year, without any additional burden. Just by keeping 2 rotating chit fund schemes active, at any given time you have a steady yearly inflow.

Since chit funds are a monthly investment mechanism by nature, you will get used to putting aside money for education, on a regular basis. It will become easy to absorb this monthly expense into your budget, it won’t stand out as a major expense any more.

At Shanthala Chits, we have attractive schemes with varying corpus amounts for customers. Whether you are targeting school fees, college tuition fees or a foreign university degree, we have just the right scheme for every need.

Shanthala Chits is a Government registered chit fund company with a 23-year successful track record and thousands of satisfied customers.Shanthala Chits is registered under the Chit Fund Act of 1982, Government of Karnataka.We are one of the most popular chit fund houses based out of Bengaluru, known for our prompt customer support and secure investments.

Take a step towards securing your child’s education, now is the right time. Get in touch with Shanthala Chits and start with an investment scheme.We will be glad to help you out with the right scheme that matches your needs. Once you set the ball rolling, you can reap the benefits of your investment year on year without any additional effort. Giving your children the precious gift of education will never be a cause for worry any more.

Anuradha C

Anuradha is a freelance writer cum corporate trainer in the IT/telecom domain with over 18 years experience. She served in senior technical and management positions in Huawei and TCS for 10+ years. Then gave up the traditional corporate ladder to go solo - in order to escape horrendous city traffic and to be at her own boss!
Anuradha C

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