Child Education Planning

Education is the key to unlocking the world, a passport to freedom” – Oprah Winfrey.

Step-By-Step Approach to Plan Your Child’s Education Needs

To be a parent, it is natural that you would want the best for your child. They should get the best education, be given the best chances in life, and so on. Besides, education is one of the best gifts you can give your kids. This is why.

As Indians, we believe that education is everything, and we want our kids to go to the best schools for the fields they want to study. When parents think about how much it will cost to go to school, they worry a lot. They spend a lot of their money to make sure their kids get the best education. Thus, having a plan for how to make money to reach this goal is important.
You should start planning as soon as possible if you already have kids so that you don’t forget anything. Especially if you want your child to go to good schools and go to school all over the world. You need to start planning now, because the costs of going to school are only going up.

Consider this example:

Mr Shah has a 3-year-old son, who will graduate in 15 years. Mr Shah wants his son to pursue engineering. If the cost of graduation in today’s terms is Rs 5 lakh, let’s ascertain how much it will cost to send his son to engineering college in 15 years?

Son’s Age3 years
Cost of Education in today’s termsRs 5 lakh
Time left for Graduation15 years
Inflation Rate10% p.a.
Cost at time of Graduation courseRs 20.88 lakh
Amount Mr Shah needs to invest per monthRs 4,180

You see, as seen in the table above, the cost of education after 15 years will rise to Rs 20.88 lakh due to inflation. And to fulfil this goal, Mr. Shah will have to invest Rs 4,180 per month, assuming he earns a return of 12% per annum.

However, if Mr Shah delays this investment, and begins to save for his son’s education five years from now, the investment will be more than double, i.e., Rs 9,079 per month.

Similarly, to ensure your child receives the best education, you need to prepare yourself financially.

If you plan now, chances are you will not compromise on your child’s future, his/her dreams, aspirations, and ambitions.

This is a guide to the 8-step investment plan towards your child’s education with details illustrated in the following case study.

Why Plan Your Child’s Education?

Saving and preparing for your child’s education might be difficult. Responsibilities and financial obligations necessitate intelligence and expertise. Why do you need a financial plan for your child’s education?

If you believe you have time to plan your kids’ education, think again. The finest and first move you can take to help your child achieve their goals is to invest in their education.

Step 1: Decide Your Time Horizon

Make a list of how many years it will be until your child graduates and graduates again. To figure out the time horizon, you need to think about how many years it will take.

There is a better chance that you can plan and invest if you have a long-time frame.

But don’t wait until the last minute. Start investing for this goal as soon as possible.

Step 2: Estimate the Cost of Education

The first thing you need to do is figure out how much your child will pay for school. This depends on a lot of things. It’s a good idea to think about whether or not you want your child to be exposed to the world and get an education.

As you think about the second question, “Are there good schools in India or abroad for the discipline your child is likely to choose?” It’s also important to think about whether you want your child to go to college and university in another country, or just go to college and university there.

Finally, how much money will be spent in both cases?

It’s also important to figure out how much it will cost to go to high school, college, or a post-graduate course in the future when you figure out the total cost.

So, let’s say a business school charges Rs. 25 lakhs today, and your child will likely attend in five years. If the fees rise by 8 percent each year, they’ll be worth more than $36 million.

And if the rate of inflation is 12% a year, you’d pay even more: Rs. 44.05 lakh in five years. That’s a big difference. And it may not be easy for everyone to start building a fund of Rs. 44 lakhs at once. So, be realistic when you think about inflation and start planning early.

Conservatively, you can estimate 8-10% inflation on education.


If you have children or want to have children, you must invest in their education. With rising tuition and a volatile employment environment, quality education is essential. Now is the time to start planning for your child’s future.