Child education – How much will college cost in future?


To send our child to the best of the colleges, is always top of our wish list. A good college education can open door to many opportunities. But college degree doesn’t come cheap and if we don’t start planning it right now, we will have a sorry face, when our child is ready to go. Therefore, the best thing to do is to start saving early.

How much will it cost?

On an average a good college will cost around 5 lacs to 10 lacs per year in India & 3 to 4 times of that in USA (excludes the travel & stay cost). Cost of education is growing very fast, with fees of good collages almost doubling over a 5-year period. Therefore, one needs to have a clear amount & year in mind towards this planning.

How much should I save?

A very tricky question, as we may have equally important goals, like buying a house, family vacation, immediate requirements etc. But, one should not wait, and start with whatever little one can start with, let’s say INR 1k/ 5k monthly, and ideally from child’s 1st birthday. One can increase monthly contribution, as & one another goal finishes or cash-flow becomes better. Power of compounding works better on a long tenure.

What do I do, If I have a shortfall?

Banks offer education loans with a wide-ranging terms & comes handy towards shortfall. But like any other loans, this one too comes with its share of EMI payments & strict interest rates.

Where do I invest?

There is no quick fix solution here. Ideally Mutual funds in the SIP format are recommended, where asset allocation & funds selection will be based on your child’s goal tenure, cash-flow, risk tolerance & other parameters.

Now all this will sound too complicated, as in most likely scenario, one will have a basic know-how towards these parameters. Therefore, its recommended that one should take the help of an advisor, who is expert in this field. is one such platform, which will help you in planning your child’s education dream. You interact with qualified advisors, who will assist you with your data & planning. Funds are advised based on scientifically selected funds, without any bias, such that it offers you the best returns.

Check what is Children’s education, career top priorities for Indians

Manoj Chahar
Founder & Storyteller at
Manoj is the founder of, with 15 years of corporate experience & expertise in financial markets. Manoj has corporate stints with Kotak Securities, IIFL group & Philips India. He holds an MBA (PGDM) degree from Symbiosis (SIMS) Pune.
His interests include birding & adventure activities.

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