6. Borrow for Education, Save for Retirement

As Indians, our children mean the world to us. So, we end up saving a lot of money for them, be it for education, a new job or marriage. But as parents, people should think of their retirement plan before getting a children’s plan for their kids. In an unselfish effort to secure the future of our kids, we end up jeopardizing our retirement plans. Most Indian parents use up their retirement fund to give good education to their kids. With various changes made in salary structure and tax deductions, dipping in retirement fund is not a good idea. You can go educations loans instead. You get tax deductions on loans but none to help you save for retirement.