The cost of higher education is rising rapidly, often faster than general inflation. Parents planning for their child’s future education need to estimate future costs accurately and start investing early to avoid financial stress later.
You can estimate future education expenses using the Education Calculator and calculate the required monthly investment using the SIP Calculator for long-term planning.
Estimating Higher Education Cost in 2035
Education inflation in India is typically higher than regular inflation. Courses such as engineering, medical, and international education may cost several times more in the future.
Even a delay of a few years in planning can significantly increase the required monthly savings.
How Much Should You Save Monthly?
The monthly saving amount depends on:
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Current education cost
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Years left until college
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Expected investment returns
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Inflation rate
Early planning allows you to invest smaller amounts while benefiting from compounding.
Best Investment Options for Education Planning
Equity mutual funds are suitable for long-term education goals due to their higher return potential. As the goal approaches, gradually shifting to debt-oriented investments helps protect the accumulated corpus.
Why Starting Early Makes a Big Difference
Starting early reduces financial pressure and allows flexibility. Even modest monthly investments can grow substantially when given enough time.
Common Mistakes Parents Make
Many parents underestimate future costs or rely solely on fixed deposits. Ignoring inflation and delaying investments are common planning mistakes.
Final Thoughts
Education planning is not optional — it is essential. Starting early, estimating future costs realistically, and investing consistently can secure your child’s education without compromising other financial goals.
FAQs
What inflation rate should I assume for education?
Education inflation is usually higher than general inflation and should be planned conservatively.
Is SIP good for education planning?
Yes, SIPs are ideal due to discipline and compounding benefits.
Should I review the plan regularly?
Yes, periodic reviews help adjust investments as goals and costs change.