Plan Your Child’s Education
Start systematic investments for your child's future milestones with Treasuryfy’s goal-based plans.
Goal Calculator
Affordable & Flexible
Start small and adjust your investment anytime without penalties.
Power of Compounding
Regular investments grow substantially over time due to compounding.
Goal-Oriented Planning
Invest with a clear goal in mind — Education, Marriage, or Retirement.
Why planning for child education is necessary?
- • Education costs in India are rising rapidly — many sources estimate that “education inflation” (increase in tuition/fees) can be 10-12 % per annum.
- • Starting early gives you a longer time horizon, which means you can invest smaller monthly amounts and benefit more from compounding.
- • Having a financial plan for your child’s education helps ensure that you’re not forced to take high-cost education loans or compromise on quality of institution because of insufficient funds.
- • It’s not just about tuition: there are other costs (accommodation, travel, equipment, study abroad, etc) which need to be factored in if your child might move beyond just their local campus.
- • A focused plan gives you peace of mind and keeps this goal separate from other financial goals (retirement, marriage, etc), thereby avoiding mixing funds and risking short-fall.
How to plan for child education?
1. Estimate the goal amount
- • Start with the current cost of the course(s) or institution you envision your child attending.
- • Project this cost to the future using an appropriate inflation rate (for education maybe 8-12 % or higher).
- • Don’t forget to include associated costs like accommodation, travel, equipment, international exposure etc if relevant.
2. Define your time horizon and budget
- • How many years until your child will need the funds?
- • Based on that horizon and target, decide how much monthly or yearly you need to invest.
- • Use tools like SIPs (systematic investment plans) for disciplined investing.
3. Select an appropriate investment strategy
- • Longer horizon → you may lean more into growth assets (equities) early on, then gradually shift to safer assets as you near the goal.
- • Keep reviewing and adjusting: as you get closer to the time when funds are needed, reduce risk.
4. Protect the corpus / mitigate risks
- • Make sure other financial priorities (like your own retirement, insurance cover, emergency buffer) are taken care of — you don’t want your child’s education fund to be compromised if something unexpected happens.
- • Avoid dipping into the fund for other uses; treat it as “untouchable” until needed.
5. Monitor and review periodically
- • At least once a year, check progress, inflation assumptions, returns, portfolio mix. Adjust if needed.
- • Increase your monthly investment if your income rises or if you realise you are off-track.
Frequently Asked Questions
When should I start planning for my child’s education?
The earlier the better — ideally as soon as your child is born or you know you will have a child. A longer time horizon gives you more flexibility and smaller monthly investments.
How much should I invest each month?
It depends on your target amount, time horizon and expected returns. For example, if you estimate that you’ll need ₹35 lakhs in 12 years (inflation-adjusted), you might need to invest a certain monthly amount in a growth portfolio. Use calculators and review annually.
What if I start late and don’t have much time left?
If your horizon is short, you’ll need to invest a larger monthly amount or accept a more conservative target (for a more modest course or institution). Also you’ll need to shift to safer assets quickly and may need to compromise on choice of institution if the corpus is small.