Education Inflation: Why Starting a Child Education Fund Early Is Important

By Admin

• 01 Oct, 2025

🎓 Education Inflation: Why Starting a Child Education Fund Early Is Important

Every parent dreams of giving their child the best education possible. But here’s the hard truth: the cost of higher education is rising faster than regular inflation. This is called education inflation, and if you don’t plan early, it can become one of the biggest financial burdens for your family.

The solution? Start a Child Education Fund as early as possible. The earlier you start, the easier it becomes to beat inflation and ensure your child’s dreams are not compromised.

📈 What Is Education Inflation?

Education inflation refers to the rate at which education costs increase every year. In India, the cost of higher education has been rising at 8–12% annually, which is much higher than general inflation (5–6%).

For example:

• An MBA that costs ₹10 lakhs today could cost ₹25–30 lakhs in 10 years.

• An engineering degree costing ₹8 lakhs today may cross ₹20 lakhs in the next decade.

⚠️ Why Parents Must Take It Seriously

1. Costs Double Every 6–8 Years
   If you delay planning, you will need to arrange a much larger sum later.

2. Loans Create Extra Burden
   Many parents rely on education loans, but that means years of EMIs for you or your child.

3. Global Education Costs Are Even Higher
   If you dream of sending your child abroad, fees + living expenses can touch ₹1 crore+ in 15–20 years.

4. Limited Scholarships
   Scholarships help but are highly competitive and uncertain.

✅ Why Starting Early Is the Best Solution

1. Power of Compounding

A small SIP started today can grow into a large education fund in 15–20 years.
Example:

• ₹5,000/month in an equity mutual fund at 12% return = ₹50+ lakhs in 20 years.

2. Less Stress on Finances

If you start late, you’ll need to invest a much larger amount monthly to reach the same goal.

3. Balanced Risk

Early investing allows you to start with equity (growth) and slowly shift to debt (safety) as your child nears college.

📊 Where to Invest for Child Education Fund

• Equity Mutual Funds (via SIPs) – For long-term growth

• Debt Funds / Bonds – For stability closer to goal year

• Child Education Plans – Specialized funds focused on education goals

• Sukanya Samriddhi Yojana (for daughters) – Government-backed safe option

🎯 Key Takeaway

Education inflation is real and rising. The only way to beat it is by starting early, investing consistently, and using compounding to your advantage.

Remember, by delaying, you’re not just postponing savings — you’re doubling the burden on your future.

At ProShield Invest, we help parents create customized child education funds that ensure your child’s dreams are never limited by money.

📞 Start your child’s education fund today!
📧 Email: contacts@proshieldinvest.in
📞 Phone: 011-69290568
🌐 Website: www.proshieldinvest.in