Education Planning

Tuition fees: The main cost to start with education planning is the tuition fees. The tuition fees depend on multiple factors like the selected country, university or college, the university’s ranking, the chosen course, etc. Year-on-year, tuition fees have been rising, making it difficult for parents to afford them.  

The rise in tuition fees is a direct result of education inflation. Let’s take the example of IIM Ahmedabad to find out how tuition fees have drastically changed over the years.  

Living expenses: When kids plan to go abroad or even to a different city in the same country, a considerable proportion of their education expenses go into living expenses. These expenses include monthly rentals for their house, grocery expenses, food expenses, water and utility bills, etc. An additional cost would also be taking up medical insurance for your child.  

The rent of a one bedroom house in Mumbai in 2012 was INR 26,000, which has risen to INR 41,000 in 2021. This shows how much rental prices have increased and will continue to increase in future. 

Travel expenses: Another sub-cost included is travel – both internationally and domestically. Flight costs from India to anywhere abroad are no joke. In the country of study, domestic travel, like applying for a monthly pass for a bus or train, also has to be accounted for in education fund planning. Recently school bus fees have been hiked by 30% to 40% in some cities in India due to the soaring fuel prices.  

Miscellaneous expenses: There may be other expenses like an outing with friends, purchasing books, study material or stationery, etc. An additional provision for such miscellaneous expenses always must be maintained.