| Key Summary
Children’s education planning is about preparing financially for your child’s future studies – without stress, last-minute loans, or compromises.
Bottom line: Thoda sa planning today can save a lot of tension tomorrow. |
As Indian parents, hum sab ek hi cheez chahte hain – hamare bachche achha padhein, aage badhein, aur life mein secure rahein. But in today’s world, education is no longer just about marks and degrees. It’s also about money planning, timing, and discipline.
The reality?
Education costs are rising fast, income is uncertain, and most families start planning thoda late.
That’s exactly why children’s education planning is no longer optional – it’s a necessity.
Why Children’s Education Planning Matters More Than Ever
1. Education Costs Are Rising Fast
Let’s look at some real numbers.
- Engineering degree in India: ₹5 – ₹20 lakh
- Medical education: ₹10 – ₹25 lakh
- Overseas education: ₹30 lakh to ₹1 crore+
And remember – these are today’s costs.
Education inflation in India is estimated at 6 – 8% annually, which means costs almost triple in 15 – 18 years.
Simple math:
₹10 lakh today ≈ ₹25 – 30 lakh after 15 years.
Isliye bolte hain – “Kal dekhenge” is the most expensive habit.
Also Read: Kal Dekhenge: The Most Expensive Habit of Indian Families
2. Early Planning = Kam Pressure, Zyada Control
Time is your biggest asset. The earlier you start, the less you need to save every month.
Example:
If you need ₹25 lakh in 15 years:
- Start early → ₹8,000/month
- Start 7 years late → ₹15,000+/month
Same goal. Almost double stress.
3. Education Planning Protects Other Life Goals
Many parents end up doing this:
- Break retirement savings
- Take high-interest loans
- Sell assets at the wrong time
Proper education financial planning ensures your child’s dreams don’t come at the cost of your own financial security.
Understanding the Real Cost of Education
| Education Type | Cost Today | Expected Cost in 15 Years |
| Engineering (India) | ₹8 lakh | ₹22+ lakh |
| Medical Degree | ₹15 lakh | ₹40+ lakh |
| MBA / Professional | ₹12 lakh | ₹30+ lakh |
| Abroad Education | ₹40 lakh | ₹1 crore+ |
*These are average estimates. Actual costs depend on course, location, and inflation.
Step-by-Step Guide to Children’s Education Planning
Step 1: Define the Education Goal Clearly
Ask yourself:
- India ya abroad?
- Professional degree ya general?
- Government college or private?
Sapna clear hoga, toh planning easy ho jaati hai.
Example:
If your child wants to study abroad, planning must start early because costs are high and time is limited.
Step 2: Calculate Your Time Horizon
Your child’s current age decides your planning power.
- Age 3 → 15 years to plan
- Age 7 → 11 years
- Age 12 → 6 years
Longer horizon = better growth opportunities.
Step 3: Choose the Right Savings & Investment Tools
Some commonly used options in India:
- SIP in Mutual Funds – for long-term growth
- PPF – for stability and tax benefits
- Child Education Plans – disciplined savings + life cover
- Hybrid options – balance of safety and returns
At Bima Saathi, we believe goal-first planning, not product-first selling.
Step 4: Protect the Plan
Saving alone is not enough.
You must also ensure:
- Adequate life insurance
- Health insurance for the family
- Emergency fund (6–12 months expenses)
Why?
Because agar income ruk gayi, planning bhi ruk jaati hai. Protection ensures the plan continues – no matter what.
Step 5: Review & Rebalance Regularly
Once every year:
- Check if your investments are on track
- Adjust for inflation
- Reduce risk as the goal gets closer
Planning is not “set and forget”.
How Much Should You Save Every Month?
Target: ₹25 lakh in 15 years
| Investment Type | Expected Returns | Monthly Savings |
| Equity SIP | ~12% | ₹8,000 |
| Balanced Funds | ~9% | ₹10,500 |
| Safe Debt | ~7% | ₹13,000 |
Higher return potential = lower monthly burden, but balance is key.
A Real-Life Example
The Sharma Family started education planning when their son was 4.
They chose:
- SIPs for growth
- PPF for safety
- Education plan with life cover
- Health insurance for protection
Today, after 10 years, they’re confident about meeting their ₹20 lakh target – without loans or panic.
That’s the power of early planning.
Why Bima Saathi Encourages Parents to Start Early
We’ve seen it closely – families who plan early feel relaxed, confident, and in control.
And those who delay often say: “Kaash thoda pehle shuru kiya hota.”
Education planning is not about fear.
It’s about freedom, confidence, and choices for your child.
Also Read:
- Insurance Mein Bharosa: Why Human Interaction is Important in Insurance
- Ek Hospital Bill, Saalon Ki Savings Gayab: Why Health Insurance Matters in India
FAQs
Q1. What is children’s education planning?
Children’s education planning is the process of saving and investing money to fund a child’s future education in a structured way.
Q2. When should parents start education planning?
Parents should start as early as possible, ideally when the child is young, to benefit from compounding.
Q3. How much money is needed for child education in India?
Depending on the course, costs can range from ₹15 lakh to over ₹1 crore for higher education.
Q4. Are SIPs good for education planning?
Yes. SIPs are effective for long-term education goals if chosen based on time horizon and risk profile.
Q5. Why is insurance important in education planning?
Insurance ensures the education plan stays on track even if unexpected events affect income.





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