The Real Cost of a Child’s School Education

As a parent, you strive hard to provide top quality education to your children. However, given the exorbitant costs of education these days, you need to plan right from the beginning to accumulate a corpus for your children’s education. In case, you are confused about the lump sum amount that will need for your child’s education, this article is for you.In this article, you will learn what factors to consider while calculating the real cost of a child’s education. Let’s get started.

The tuition fees will form a major chunk of the expenses that you will incur on your child’s education. You need to include the tuition fees for schools/colleges as well as for private coaching that your child may require. As per the estimates, average tuition fees in an Indian school ranges between Rs. 25,000 to Rs. 50,000 annually.

Though the costs of books and stationery seem nominal, they stack up over the course of year to form a major expense. In fact, as per the estimates, the costs of books and stationery forms as much as one-fifth of the total expenses that you may incur on your child’s education. You may have to spend around Rs. 10,000 to Rs. 15,000 every year for buying books and stationery for your child.

Depending upon the type of school and vendor, buying uniforms for your children can be quite expensive. Some schools may even ask you to buy uniform from a designated vendor only. Also, remember that you will have to buy at least two to three sets of uniform for your child. You may incur an average annual cost of Rs. 5,000 to Rs. 10,000 on school uniforms.

Learning isn’t restricted to school classrooms only. Besides gaining the bookish knowledge, your child should also take part in extra-curricular activities to learn other aspects of life. For example, he/she can take dance classes, music lessons, swimming classes etc. to enhance his/her skills. For enrolling your child in these activities, you may incur Rs. 20,000 to Rs. 40,000 every year.

In case you live in a smaller city or rural area, you may have to send your child out to a metropolitan city for schooling. In such a situation, you will also incur boarding charges (food and accommodation) for your child. It can range between Rs. 50,000 to Rs. 1 lakh for a year. To conclude All in all, you will require around Rs. 1.5 to 2 lakh every year to ensure quality education for your child. A wise idea is to start investing with smaller amounts in instruments such as mutual funds, fixed deposits etc. to create a corpus that you can use for your child’s education.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.