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🎓 Children Education Planner

Plan and save for your child's education goals. Calculate future costs with education inflation and track your progress towards the target.

Child's current age 5 yrs
01020
Estimated cost today (₹) 8,00,000
2L5L1Cr
Amount already saved (₹) 0
02.5L50L
Monthly savings you can invest (₹) 10,000
1k50k1L

Results

Progress Status:
—
0%
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Future education cost
₹0
0
Required monthly SIP
₹0
Assuming 11% annual return
Your Accumulation Breakdown
Existing savings will grow to ₹0
Monthly SIP will accumulate ₹0
Total accumulated ₹0
UG in India â€ĸ Bachelor degree from tier-1/2 college â€ĸ Education inflation: 9% â€ĸ Investment return: 11%
⚠ī¸Note: Calculations assume 9% education inflation and 11% annual investment return. Actual costs and returns may vary. Consider education loans, scholarships, and diversified investments for comprehensive planning.

Understanding Children Education Planning

Education costs in India are rising at 8-10% annually, significantly higher than general inflation. Planning early and investing systematically can help you build a robust education corpus without financial stress when the time comes.

Whether you're planning for undergraduate studies in India, professional courses like engineering or medicine, or international education, starting early gives your investments more time to grow through the power of compounding.

How We Calculate

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Future Cost Projection: We apply 9% annual education inflation to today's cost over the number of years until your child reaches the education goal age (18 for UG, 22 for PG).
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Existing Savings Growth: Your current savings grow at 11% annual return (assumed equity/balanced fund returns) until the goal year.
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SIP Accumulation: Monthly investments grow through SIP with 11% annual returns, compounded monthly. We calculate the future value using the standard SIP formula.
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Gap Analysis: We compare total accumulated amount (existing savings + SIP growth) with future education cost to identify any shortfall.

Why Start Early for Education Planning?

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Time is Your Ally

Starting when your child is young gives your investments 10-18 years to compound, significantly reducing monthly burden.

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Lower Monthly Commitment

Investing ₹5,000/month for 15 years can build a larger corpus than ₹20,000/month for 5 years, thanks to compounding.

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Beat Education Inflation

Equity-oriented investments historically return 10-12%, helping you stay ahead of 8-10% education inflation.

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Multiple Goal Coverage

Early start allows you to plan for multiple children or multiple education stages without stress.

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Flexibility & Choices

Adequate corpus gives your child freedom to choose courses and institutions without financial constraints.

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Avoid Loans & Stress

Proper planning reduces or eliminates need for education loans, saving on interest and reducing future burden.

How to Use This Planner

1
Select Education Goal: Choose from UG/PG in India or Abroad based on your aspirations. Each has different cost projections and timelines.
2
Enter Child's Age: Current age helps calculate years remaining until the goal. More years = more time to save and compound.
3
Adjust Estimated Cost: We provide defaults, but you can adjust based on specific colleges or courses you're targeting.
4
Enter Existing Savings: Any amount already saved for education (in PPF, mutual funds, etc.) will grow and reduce future burden.
5
Set Monthly Investment: Amount you can invest regularly through SIP. Increase this gradually as your income grows.
6
Review Progress & Gap: Check if you're on track. If shortfall exists, consider increasing SIP or starting debt reduction.

Investment Options for Education Planning

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Equity Mutual Funds

Best for: 10+ years horizon

Expected return: 10-12%

Risk: High (short-term volatility)

Ideal for young children. Start with equity and shift to debt closer to goal.

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PPF / Sukanya Samriddhi

Best for: Conservative investors

Expected return: 7-8%

Risk: Low (government backed)

Tax-free returns but lower growth. Good for partial allocation.

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Child Plans (ULIP/Endowment)

Best for: Those needing insurance

Expected return: 5-8%

Risk: Low to medium

Combine insurance with savings but generally lower returns than pure MFs.

Frequently Asked Questions

How accurate is the future cost projection? ▾
We use 9% education inflation based on historical trends. Actual inflation varies by institution type and location. Premium institutions like IITs, IIMs may have different inflation rates. Always add a 10-15% buffer for unexpected costs.
Should I invest only in equity funds for education? ▾
No. While equity is great for long-term (10+ years), shift gradually to debt/liquid funds as goal approaches. Recommended: 100% equity if goal >10 years away, 70:30 equity:debt if 5-10 years, 30:70 equity:debt if <5 years.
What if my child gets scholarship or education loan? ▾
Scholarships reduce your burden - excess corpus can be used for higher education or other goals. Education loans are useful but come with 8-12% interest. Having a corpus reduces loan amount and interest outgo significantly.
Should I plan for education abroad even if unsure? ▾
Yes, plan for the higher cost scenario (abroad). If child studies in India, the surplus corpus can fund postgraduation, marriage, or their business. Better to overprepare than underprepare.
Can I use existing FDs or insurance maturity for education? ▾
Absolutely. Enter the current value in 'Amount Already Saved'. The calculator will project its growth. However, ensure those funds are earmarked specifically for education and not allocated elsewhere.
What if I can't afford the required monthly SIP? ▾
Start with what you can afford. Even ₹2,000-3,000/month compounds significantly over 10+ years. Increase SIP by 10-15% annually as salary grows. Consider small sacrifices in discretionary spending.
How do I handle multiple children's education? ▾
Run separate calculations for each child. Stagger SIPs if goals are years apart. Elder child's corpus can be partially reallocated to younger child post-education. Consider family floater education plans.
Should I invest in child's name or mine? ▾
Usually better in parent's name for tax benefits (80C) and control. Child's name (minor account) works for gifts from relatives. Consult tax advisor for optimal structure based on your income slab.

💡 Pro Tips for Education Planning

  • ✓ Start early: Even ₹3,000/month for 15 years beats ₹15,000/month for 5 years due to compounding.
  • ✓ Annual step-up: Increase SIP by 10% annually aligned with salary hikes - dramatically improves corpus.
  • ✓ Tax optimization: Use ELSS funds (80C benefit) and PPF initially, then expand to other equity funds.
  • ✓ Rebalance periodically: Review portfolio annually, shift from equity to debt as goal nears (last 3-5 years).
  • ✓ Consider inflation buffer: Plan for 10-15% higher than projected cost for contingencies.
  • ✓ Explore scholarships: Many institutions offer merit and need-based scholarships - research early.

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