From SIPs to safety nets: How parents should plan for soaring education costs

Subscribe to enjoy similar stories. As education costs rise faster than inflation, many parents are starting to plan early for their children’s higher studies. Kolkata-based Akash Samanta, 38, and Meghna Basu, 36, a homemaker, have not specifically planned for their five-year-old son Aihik’s education, but they invest monthly in a public provident fund (PPF) account.

In addition, his grandfather has invested in a children’s mutual fund that can only be redeemed when Aihik turns 18. “We are aware that education costs are going up, and it is important to stay prepared. We have started investing, and we plan to take a more structured approach as he gets older," said Samanta.

In contrast, Bengaluru-based Roshan Setty and Neena Biswal, both 43, parents of three-year-old Atharva, have adopted a layered approach from the outset. Equity mutual fund SIPs form the core of their education plan, supported by a traditional insurance policy and rental income earmarked for future expenses. “I don’t know what my child will study or whether he will go abroad, but the aim is to ensure that money does not become a constraint when decisions have to be made," he said.

Both families have begun planning early for their children’s higher education, giving them a solid financial base. But early investing alone may not be sufficient. In this story, we explore how parents can strengthen such efforts with more structured, goal-oriented planning to ensure education goals remain achievable and financially secure.