What is Education Inflation: It is defined as the steady and consistent increase in the cost of education over time.
These costs encompass a range of items including tuition fees, textbooks, school supplies, transportation, accomodations and living expenses.
These costs encompass a range of items including tuition fees, textbooks, school supplies, transportation, accomodation and living expenses.
Causes of Education Inflation:
❇️Increased demand for education.
❇️Broader economic inflation.
❇️Advancement in learning tools and infrastructure.
❇️Shifts in parental expectations.
❇️The expansion of private educational institutions.
❇️The necessity for additional coaching and exam preparations.
❇️The growing expense of studying abroad.
How will the Education Inflation Rate Impact in Coming Years in India?
With education costs rising at 8-10% annually, the cost of education can potentially double every sex to seven years.
A Level-by-Level Breakdown for Rising Education Costs for Children in India.
1️⃣Pre primary education now costs Rs. 30,000-Rs 1,50,000 annually in urban areas.
2️⃣Primary and secondary education in private schools can range from Rs. 50,000-Rs. 3,00,000 per year, depending on the institutions.
3️⃣Higher education costs are even more daunting: engineering courses ,may require Rs. 8-15 lakhs, while medical degrees often exceed Rs. 50 lakhs.
4️⃣Studying abroad or at premier institutions like IITs and IIMs can cost Rs. 25-50 lakhs or more.
Practical Tips for Managing Rising Child Education Costs in India.
😎 Invest In SIPs and Mutual Funds: Systematic Investment Plan(SIPs) in equity or hybrid mutual funds, ideally guided by a mutual fund planner, can help you build a substantial corpus over time.
😁Insurance-Linked Plans: Child Insurance Plans combines savings and life insurance, providing financial security even in your absence.
🤩Start Early with Savings: Allocate dedicated amount of savings every month in your child’s education plan to build a substantial amount of corpus to meet child’s future higher educational expenses.
Proactive financial planning and disciplined savings-especially with guidance from a Financial Planner-can help parents stay ahead of rising education costs.
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