How much does higher education cost in India?

Current costs vary significantly: engineering (Rs 8-25 lakh for 4 years), medical (Rs 30 lakh - Rs 1 crore+), MBA from top B-schools (Rs 20-30 lakh for 2 years). With 10% education inflation, these costs will roughly 2.5x in 10 years and 6.7x in 20 years.

What about studying abroad?

A 2-year master's program in the US currently costs Rs 40-80 lakh (tuition + living). UK and Europe are somewhat cheaper. Factor in currency depreciation (historical 3-4% per year) in addition to fee inflation. Your CFP models the total cost in rupees for the year your child will enrol.

Should I invest in a child education plan from an insurance company?

Most child education plans from insurance companies give returns of 4-6% — below inflation. You are better off with a combination of term insurance (for protection) and mutual fund SIPs (for growth). Your CFP will compare the specific plan you are considering versus a DIY approach.

When should I start saving for my child's education?

From birth, if possible. Starting at age 0 gives you 18 years of compounding. A monthly SIP of Rs 15,000 growing at 12% for 18 years builds approximately Rs 1.07 crore. Waiting until the child is 10 means you need Rs 45,000/month for the same corpus. Time is the biggest advantage.

Children's Education Planning by CFPs | Finamize

Plan and fund your children's higher education — whether in India or abroad. A CFP calculates the future cost and builds a systematic savings plan to get there.

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Why Finamize

Why Choose Finamize

Future Cost Projection

Education inflation runs at 10-12% in India. Your CFP calculates what engineering, medical, MBA, or overseas education will cost when your child reaches that age — not what it costs today.

Systematic Savings Plan

A structured SIP strategy that starts early and scales over time. Even Rs 10,000/month started at birth can grow to Rs 50+ lakh by age 18 with disciplined investing.

Loan vs Savings Analysis

Should you save the entire amount or take an education loan for the balance? Your CFP analyses the tax benefit of loan interest (Section 80E) vs the opportunity cost of over-saving.

Goal Protection

Term insurance and child plans ensure the education goal is funded even if the earning parent is not around. Your CFP recommends the right protection structure.

How It Works

Get Started in 3 Steps

Define Education Goals

Share your aspirations — engineering in India, MBA abroad, medical school. Your CFP researches current costs and projects future costs with education-specific inflation.

Funding Strategy

Your CFP recommends the optimal mix of savings, investments, and potential education loan to fund the goal without over-stretching your finances.

Invest & Track

Start goal-linked SIPs with periodic step-ups. Track progress annually and adjust for changes in cost estimates or education plans.

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FAQ

Frequently Asked Questions

Plan Your Child's Education

Connect with a CFP to calculate the true future cost of your child's education and build a plan to fund it. Start early, save smart.