IIM MBA fees in 2007 – ₹4,00,000
In 2024 – ₹27,00,000IIT B.Tech (CS) fees in 2007 – ₹1,00,000
In 2024 – ₹10,00,000
MBBS in a private college in 2007 – ₹20,00,000
In 2024 – ₹60,00,000
That’s education inflation!
On average, across India, that’s about 12% inflation per year.
Which means costs are doubling every 6 years.
This isn’t to scare you.
But it’s something every parent should be aware of.
And while IIT, IIM or MBBS may not be every child’s path — the point is simple: whatever path they choose, it’s going to cost more than we think.
We all want to give our kids the best shot at quality education.
But that dream needs a plan.
Here’s what you can do depending on your child’s age:
1. If your child is under 9:
– You have a long-time horizon (8–10+ years)
– Start a SIP in equity mutual funds
– Given the long duration, you can allocate assets as:
80% Equity | 10% Gold | 10% Debt.
– Increase investments yearly as your income grows
2. If your child is 10–12:
– You still have a good 5-7 years
– Go for a mix of equity and debt with lower risk, still some growth.
– Allocation: 30–40% Equity | 5–10% Gold (optional) | 60–70% Debt
3. If your child is 13–16:
– The goal is near — focus should be on capital protection
– Shift completely to debt instruments:
90% Debt Funds | 10% Cash/Bank Deposits (for immediate needs)
– Avoid equity and market-linked volatility
Some simple reminders:
– De-risk 2–3 years before college — move from equity to safer options
– Consider international index funds — useful for diversification + currency benefit
You may not know exactly what your child will pursue — but not preparing because of that uncertainty? That’s a risk in itself.
Even if you can’t save 100% of what’s needed, even a partial cushion can help reduce student loan stress later.
Remember,
Starting early and staying consistent can make a big difference later.
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