The cost of education in India is skyrocketing and with the growing inflation and unexpected sudden unfortunate events like a pandemic, one thing that pops regularly in a parents’ mind is, ‘Whether we will be able to send our children into a good school and then a reputable college?’
Well, going by the price hikes in school and college fees every year, rising costs as well as the exponential boom in your expenditures and overheads, it is unlikely that you will be able to support your kids’ education when the time comes. Forget international education (that you have been dreaming big time), you won’t even be able to provide a normal national education if you do not have separate savings in the form of a child education plan or a strategic investment meant only on your child’s education.
The reason being, while the cost of CBSE school fees was Rs. 10,000 in 2002, it is anything between Rs. 35,000 to 70,000 today and while the cost of ICSE school fees was Rs. 25,000 in 2002, it has soared up to a starting rate of Rs. 1,00,000. With the current scenario, it is estimated that the average cost of an MBA degree will be around 50-60 Lakhs (INR) until the year 2025, and around 25-30 lakhs for an engineering degree. And if you aspire your kid to study medicine, let us give you a small statistic – The cost of a Medical degree in 2007 – 15.50 lakh, in 2017 it shot up to 41.43 lakhs. Now assuming a 10% rate of inflation, a medical degree will be anything around 173 lakhs in 2027.
Yes, you need to stop dreaming your kid to be the future Sundar Pichai, the CEO of Google or Satya Nadella, the CEO of Microsoft if you can’t invest in a child education planning today because when it comes to higher education, it has the highest inflation rates.
Attention Indian Parents, You Can’t Keep High Expectations from Your Kids When You are Finding it Difficult to Invest in a Child Education Planning Today
There was a time when good grades and intelligence was the only thing that mattered but things are different today. In today’s time and in years to come by good grades and intelligence do/will count, but not without you (as a parent) being able to afford the college/institute fees and expenses that your son/daughter aspires to be in.
The class of 2018 of IIM-Ahmedabad paid Rs. 19.5 lakh for the 2-year course. Now, this was 400% higher than what the B-school charged in 2007. So, if the fees continue to rise anything like 20% in these reputed B-schools where students with good grades are only considered, it was cost roughly Rs. 95 lakhs in 2025. (Source) Now imagine sending your children into a foreign institute for any degree/course he/she wants to be in. Add the cost of the coaching institutes and tutorial classes per year that takes huge amounts to prepare students for entrance exams.
As an ambitious Indian parent, you need to realize that your child’s education will be an expensive affair as both the basic and higher education costs will be rising at a fast clip. This is the reason it is often advised to start early when it comes to saving for your child’s education so that both you and your kid remain stress-free without having to settle for anything less than your desired future.
If you want to save and invest for your child’s future and want to seek information on child education planning, you can contact us at chandrakant@ghanchiinvest.com or call us at +91 9820926446/7977061717. Depending on the child’s age and your savings, we give you the most appropriate investment options along with the financial strategies to be followed at each stage so that you save enough for your child’s education and also for your retirement life.
P.S.: Today 79% of the Indian parents are spending their earnings on their child’s education, 49% are working two jobs to fund their child’s education and 61% of Indian parents wish they had started earlier as their kids fail to get into their desired university/stream and at times are even compelled to drop out from college. Don’t be in this regret bracket, save today and secure the best education for your child in the future!!!
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