Child Education Planning: Securing Your Child’s Future

• Every parent dreams of giving their child the best education possible. But with rising education costs, this dream requires careful financial planning.
• A solid child education plan ensures that when the time comes, your child has access to quality education—without financial stress.

The Reality of Rising Education Costs

Consider this:

• A 5-year-old child today will likely start college when he is 18-year-old. If a good college education costs ₹10 lakhs today, how much will it cost when they turn 18?
• Let’s assume an education inflation rate of 7% per year (which is very conservative, given that professional courses like engineering, MBBS, and MBA programs have seen double-digit inflation rates in recent years).

Using this estimate:

Current college cost: ₹10,00,000

Inflation rate: 7% per year

College cost at age 18: ₹25,00,000 (more than 2.5 times the current cost!)

This means that by the time your child turns 18, you’ll need around ₹25 lakhs to fund their education. And if you have aspirations for global education, the required amount could be even higher.

How Can You Plan for This?

• The earlier you start, the easier it becomes. Instead of relying on last-minute loans, a well-structured financial plan can help you systematically build this fund.
• For example, by investing just ₹10,000 per month in a well structured investment portfolio, you could accumulate this ₹25 lakh goal in approximately 12 years.

Why Planning Matters

• Avoid Last-Minute Stress: Education costs won’t wait, and loans can add financial pressure.
• Beat Inflation: Your savings in a bank account won’t grow fast enough to keep up with rising education costs.
• Ensure Quality Education: A structured plan ensures that your child gets the best education, no matter what.

A well-structured child education plan isn’t about chasing high returns—it’s about ensuring that when your child is ready for college, you have the funds ready without financial stress. The right plan ensures that when your child dreams big, money is never the hurdle—only the sky is the limit!