With the world changing so fast today, gifting quality education to your child is no longer a fantasy—it’s a worthy financial objective. From pre-school to post-graduation studies, the price tag of education in India and overseas has been increasing consistently. Beginning early with systematic saving is not only intelligent—it’s crucial. This is where child plans step in.
The sooner you start planning for your child’s education, the better their financial future will be—and the more at ease you’ll be later.
The Rising Cost of Education: Why Putting It Off Isn’t an Option
It’s true—education is becoming costly. Whether it is a private Indian school or a degree from an international university, parents are now confronted with costs that can comfortably exceed lakhs or even crores.
Estimated Expenses to Look Out for:
- Indian Education: An engineering course for 4 years at a well-known Indian college can cost ₹10–15 lakhs now. In 15 years, this could rise significantly due to inflation, potentially exceeding ₹30 lakhs depending on the institution.
- Foreign Education: Getting a master’s abroad costs ₹50–80 lakhs today. By the time your child is mature, you might need upwards of ₹1 crore depending on the destination and course.
- Schooling: Even private schooling from KG to Class 12 can run up to ₹15–20 lakhs in metro cities.
With these increasing figures, early investment through structured instruments such as child plans enables you to beat inflation and ensure your child’s aspirations.
SIP vs. Child Plans: Selecting the Best Strategy
While mutual fund SIPs (Systematic Investment Plans) are well-known, they are not the sole choice. Parents tend to compare SIPs with specific child plans provided by insurance companies.
Comparing the Two:
SIPs:
- Higher potential returns through flexible investment choices.
- No insurance cover or assured payouts.
- Suitable for investors with moderate to high risk tolerance.
Child Plans:
- Blends savings or investment with life cover.
- Some ULIP-based child plans permit partial withdrawals for milestones such as school entry or higher studies (after lock-in).
- Traditional plans may offer guaranteed maturity benefits, which provide reassurance.
Verdict: You can have both. Use SIPs for growing wealth and child plans to ensure financial security and disciplined payouts at times of greatest need.
Why You Should Start Before They Turn 5?
The sooner you start, the more time your money has to grow. Starting before your child is five years old gives you an early advantage.
Most Important Reasons to Start Early:
- Lower Premiums: Early investor pays less for insurance-based child plans.
- Compounding Power: Small investment every month can become substantial over a period of 15–20 years.
- Stress-Free Planning: Having extra years to plan, you do not have to borrow money at the last minute or sell assets.
- Goal-Based Savings: Save in line with actual education milestones, not estimates or approximations.
Taking action early ensures that you don’t have to sacrifice your child’s education because of cost.
Conclusion: Secure Their Future, Stress-Free
Planning your child’s education is one of the most meaningful financial decisions you’ll ever make. With education costs rising faster than inflation, relying on savings alone won’t do. That’s why child plans play such a vital role in securing your child’s future. Begin early—ideally before your child turns five—and give your investments time to grow, while ensuring protection and flexibility because a dream education deserves a well-thought-out plan.
