Guides / Plan Your Child's Education Fund: How Much to Save

Plan Your Child's Education Fund: How Much to Save

Education costs often rise faster than normal inflation. Planning early makes the monthly amount small.

Example: a ₹25 lakh course today

Assume 8% education inflation, 12% investment return and money needed at age 18.

Starting at birth needs about ₹5,000 less per month than starting at age 5. Test your own plan in the Child Education Calculator.

Steps

1. Estimate today's cost of the course you have in mind, in India or abroad.
2. Add inflation. For foreign education, also think about the exchange rate.
3. Find the SIP with the calculator.
4. Choose investments by time left: more equity when the goal is far away, and shift to safer options as it gets close.
5. Separate this goal from your retirement savings.

Also consider

• A child plan or Sukanya Samriddhi account for a girl child. See the SSY guide.
• An education loan as a backup. See education loan basics.

Returns are not guaranteed.