Child Education Planning in India – Complete 2025 Guide

Why Education Planning is Crucial

By 2035:

• Engineering/medical in India may cost ₹25–40 lakh.
• MBA in IIMs ~₹60 lakh.
• Abroad studies ₹1 crore+.

Parents who don’t plan early may struggle with loans or compromise on child’s dreams.

How to Estimate Future Cost

• Take today’s fee (say ₹10 lakh).
• Assume 8–10% inflation.
• In 15 years, cost becomes ~₹40 lakh.

👉 Use our Child Education Calculator for exact estimates.

Best Investment Options

1. Sukanya Samriddhi Yojana (SSY) – For girl child. 8%+ returns, tax-free.
2. Equity Mutual Fund SIPs – For long horizon growth.
3. PPF/EPF savings allocation.
4. Child Insurance + ULIPs (with caution).

Strategy to Save

1. Start SIPs as soon as child is born.
2. Mix equity (70%) + debt (30%).
3. Review every 2–3 years.
4. Increase SIP when salary increases.

Mistakes to Avoid

• Starting late (5–10 years delay doubles required SIP).
• Relying only on FDs.
• Not protecting plan with insurance (in case of parent’s death).

FAQs

Q. How much to save monthly for ₹40 lakh in 15 years?
👉 Around ₹15,000/month in equity mutual funds (~12% return).

Q. Should I buy child ULIPs?
👉 Only if you understand costs. Mutual funds are more transparent.

Education is the best gift for your child. Start early → less stress later.