Education costs are increasing alarmingly, especially for higher studies and overseas programs. Proactive financial planning is the need of the hour.
In the last decade, one of the most critical areas of financial management has become planning for your child’s education. Increasingly high rates of costs on education, particularly higher studies and overseas programs, have called for proactive financial planning.
There can never be anything more important in determining your child’s career prospects or their growth in person, which is education; therefore, the strategic approach parents take toward their child’s education becomes an absolute imperative.
Here’s a guide on effective strategies and tools for saving for your child’s education, considering the rising costs in India.
Education costs in India have been upward over the past decade. From primary schooling to advanced degrees, expenses such as tuition fees, extracurricular activities, books, and technology have increased significantly. For instance:
1. School Education: The fees of private schools vary from Rs 50,000 to Rs 3,00,000 per year, depending on the school’s infrastructure and reputation.
Estimate Future Costs: Use online education cost calculators or financial planners to estimate your child’s future education expenses, accounting for inflation. For example, if a program costs ₹10 lakhs today, with an average inflation rate of 8%, it may cost over ₹21 lakhs in 10 years.
Define Milestones: Decide how much you’ll need at different stages, such as school, undergraduate, and postgraduate studies.
