Child Education Planning
Secure your child's educational future with smart financial planning
What You'll Learn
Education Cost Analysis
Current Education Costs (2025)
| Education Level | Government School | Private School | Premium School |
|---|---|---|---|
| Primary (1-5) | ₹5,000 - ₹15,000/year | ₹50,000 - ₹1,50,000/year | ₹2,00,000 - ₹5,00,000/year |
| Secondary (6-10) | ₹8,000 - ₹20,000/year | ₹80,000 - ₹2,00,000/year | ₹3,00,000 - ₹6,00,000/year |
| Higher Secondary (11-12) | ₹10,000 - ₹25,000/year | ₹1,00,000 - ₹2,50,000/year | ₹3,50,000 - ₹7,00,000/year |
| Undergraduate | ₹20,000 - ₹50,000/year | ₹2,00,000 - ₹8,00,000/year | ₹10,00,000 - ₹25,00,000/year |
| Postgraduate | ₹30,000 - ₹1,00,000/year | ₹3,00,000 - ₹12,00,000/year | ₹15,00,000 - ₹40,00,000/year |
📈 Inflation Impact
Education inflation in India averages 10-12% annually, much higher than general inflation.
Example: Current cost of ₹2 lakh/year
After 10 years: ₹5.18 lakh/year
After 15 years: ₹8.14 lakh/year
🌍 International Education
Studying abroad requires significantly higher planning and funding.
Education Planning Strategy
Estimate Future Costs
Calculate education expenses considering inflation and your child's age.
Start Early
Begin investing when your child is young to leverage compound growth.
Diversify Investments
Use multiple investment vehicles to balance risk and returns.
Sample Planning Calculation
Child's Current Age: 5 years
Target: Engineering degree after 13 years
Current cost: ₹8 lakh total
Future cost @ 10% inflation: ₹27.2 lakh
Monthly SIP Required
Assuming 12% annual returns
Monthly investment needed:
₹8,500
Investment Options
Long-term Options (5+ years)
Equity Mutual Funds
Best for long-term wealth creation with potential 12-15% returns.
✓ High growth potential ✓ Tax efficient ✓ Professional management
Child Education Plans
ULIP-based plans combining investment and insurance.
✓ Life cover ✓ Guaranteed payouts ✓ Tax benefits
PPF (Public Provident Fund)
15-year lock-in with tax-free returns of 7-8%.
✓ Tax-free returns ✓ Government backing ✓ Loan facility
Short-term Options (2-5 years)
Debt Mutual Funds
Stable returns of 6-8% with moderate risk.
✓ Better than FDs ✓ Tax efficient ✓ Liquid
Fixed Deposits
Safe option with guaranteed 5-7% returns.
✓ Capital protection ✓ Predictable returns ✓ Easy to understand
NSC (National Savings Certificate)
5-year term with tax benefits and 6-7% returns.
✓ Tax deduction ✓ Government backing ✓ Compounding
Government Schemes
Sukanya Samriddhi Yojana
Exclusive scheme for girl child with attractive returns and tax benefits.
Example: ₹1.5L annually for 15 years = ₹65 lakh at maturity
Other Government Options
Kisan Vikas Patra
124 months tenure, doubles money, 7.5% returns
Post Office Monthly Income Scheme
5-year tenure, monthly income, 7.4% returns
Senior Citizens Savings Scheme
For grandparents, 8.2% returns, quarterly interest
💡 Combine multiple schemes for diversification
Age-wise Planning Strategy
Age 0-5 years
Maximum time horizon - Focus on growth
- • 80% Equity Mutual Funds
- • 20% Debt/PPF
- • Start Sukanya Samriddhi (girls)
- • Consider child insurance plans
Age 6-12 years
Moderate time horizon - Balanced approach
- • 60% Equity Mutual Funds
- • 40% Debt/Fixed Income
- • Increase SIP amounts
- • Review and rebalance
Age 13+ years
Short time horizon - Focus on safety
- • 30% Equity Mutual Funds
- • 70% Debt/Fixed Income
- • Start moving to safer options
- • Consider education loans
Your Education Planning Action Plan
Immediate Steps (This Month)
Calculate future education costs using inflation calculator
Open Sukanya Samriddhi account (for girl child)
Start SIP in diversified equity mutual fund
Review and increase existing investments
Long-term Steps (Next 6 Months)
Consider child education insurance plan
Open PPF account for tax-free long-term growth
Set up automatic annual review and rebalancing
Research international education costs if considering
Start Planning Today
Use our SIP calculator to determine how much you need to invest monthly to reach your child's education goals.