Planning For Child's Education

Children’s education, in particular higher education, is an important financial goal.

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Paresh S Kariya
Director, Sapient Wealth Advisors & Brokers Pvt Ltd.

It’s no longer a secret that education has turned quite expensive in modern days. In a rising competitive market nothing can be as best as an asset as education is to stay relevant irrespective of the time. Often, parents end up taking education loans to facilitate children’s higher education. Given the impact of inflation and higher interest rates, the education costs will only move northwards. Already, for higher and specialised courses in India, one needs to shell out anywhere between Rs 10 lakhs and Rs 40 lakhs.

Certain degrees in India and studying abroad are as expensive as buying a home in the country’s metro cities, reaching as high as a crore or even more. It is worth pondering over how much the overall education cost would be when children enter their late teens one-and-a-half decades later. Inflation in education tends to reach as high as 7-10 per cent. It means that a Rs 10 lakh course today will require anywhere between Rs 28 lakhs and Rs 44 lakhs in the next 15 years. Overseas education cost may surpass Rs 3 crore. It’s a large corpus of money and possibly beyond the reach of the majority.

The Way Out