Are You Spending Too Much On School Fees?

Rising cost of education is affecting not just school fees, but also higher education. Instead of putting it all in a good school, strike a balance to ensure your future goals, such as children's higher education and your retirement planning do not get jeopardised

- Sanjeev Sinha

The race to secure a good education has never been more expensive—or more stressful—in India’s metros. With the number of quality public schools shrinking and private schools, including international ones, with dazzling facilities mushrooming, many middle-class families feel compelled to pay premium fees just to keep their children in reputed schools.

Their reasons vary, from ensuring the “best” education for their child, securing admission in a “good” school, to building the right network early for professional success later.

As many parents increasingly find themselves caught between aspiration and affordability, this new trend gives rise to many questions. Does expensive education guarantee success? Are only expensive schools good? What's the larger cost of such schools—is it affecting crucial long-term goals, such as saving for higher education for the child or building a retirement corpus for the parents?

We explore how parents can find a middle ground that ensures quality education today without compromising financial security tomorrow, and balance ambition with prudence through smart planning, budgeting, and a clear understanding of what defines “best” education.

The Rising Cost Of Schools

Every parent wants their child to receive the best education possible, but quality education today comes at a hefty and ever-rising cost.

According to EduFund, India’s first education fund platform, private school tuition fees in Tier 1 and Tier 2 cities range between ₹2,500 and ₹8,000 per month, with annual fees in premier schools like DPS RK Puram, Delhi, crossing ₹1 lakh.

According to a media report, India’s top private or international schools are charging between ₹12 lakh and ₹20 lakh annually.

Another media report on Top 8 Residential Schools in India 2024 says that India’s top ranking residential schools that follow an international curriculum are charging up to ₹30 lakh annually.