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A child goal is part of a financial goal. A financial goal states in money terms what your current financial status is. It is an idea of where you stand financially. What are your financial assets and so on?
The next step is where you want to be financially in a specific time in the future.
Your financial goal can be a medium term goal such as providing a good education to your child. For this you might need to invest money over a medium term say 5-10 years for your child’s higher education called a child goal. For this you will need an online child goal calculator.
Step 1: You need to plan for your child’s higher education as early in his life as possible. You enter the child’s present age by using the slider in the age of the child slot in the online child goal calculator. You can also fill in the age directly in the “age of child” slot of the online child goal calculator.
Step 2: You need to have an idea at what age your child might need this money for his/her marriage or higher education. You enter the child’s age at which the money is required by using the slider or directly in the “age of the child at which you require the money” slot of the online child goal calculator.
Step 3: The numbers of years to the financial goal of your child’s education or marriage is calculated directly by the online child goal calculator.
Step 4: You need to know what the present cost of the child’s education or marriage will be. You enter this cost in the “Present Cost” slot.
Step 5: You need to project what the average rate of inflation over the time period will be. Inflation is the general rise in prices of goods and services in the economy over a period of time. You enter the rate of inflation in the “inflation slot” provided.
Step 6: Using the present cost which you have filled and the projected inflation rate the online child goal calculator calculates the amount you would require for the future child goals in the “future costs” slot.
Step 7: You have to fill in the amount you have currently invested so far towards your child’s goals in the “amount invested so far” slot.
Step 8: You have to fill in your expected rate of return on investment in the “return on investment” slot.
Step 9: The online child goal calculator calculates the monthly amount you need to invest to get the required amount for your child’s goals.
Step 10: The online child goal calculator also gives the yearly amount you need to invest to get the required amount for your child’s goals.