In India, a growing number of parents are prioritizing their children's education above all else, sometimes even at the expense of their own financial security. This trend, driven by the increasing cost of education and the desire to provide children with the best possible future, has led many parents to focus their savings efforts almost exclusively on funding school and higher education. A recent survey indicates that a significant portion of affluent Indian parents are willing to dip into their retirement savings or even sell assets to ensure their children receive a quality education, both in India and abroad.

The rising cost of education in India is a significant concern for parents. From preschool to postgraduate studies, the expenses associated with education have been steadily increasing. Tuition fees, along with other charges such as transportation, books, and extracurricular activities, can put a strain on household finances. In private schools in tier 1 and tier 2 cities, monthly tuition fees typically range from ₹2,500 to ₹8,000. For higher education, government colleges like Delhi University or IITs can cost between ₹20,000 to ₹2,00,000 per year, while private universities like Ashoka or Manipal can range from ₹5,00,000 to ₹15,00,000 annually for undergraduate programs. Professional courses such as engineering, law, and management are even more expensive, particularly in private institutions. Considering a 6% inflation rate, the cost of a four-year degree which is approximately ₹16 lakhs presently, could rise to ₹40 lakhs in the next 15 years.

Many parents are realizing that prioritizing education requires careful financial planning and early saving. Starting early allows for the power of compounding to work its magic, enabling even modest contributions to grow substantially over time. Various investment options are available to help parents build a dedicated education fund. Mutual funds, particularly systematic investment plans (SIPs), are popular choices due to their potential for generating significant returns over the long term. Other options include the Public Provident Fund (PPF) and the Sukanya Samriddhi Yojana (SSY), a government-backed scheme specifically designed for the education and marriage expenses of a girl child.

The allure of overseas education is strong, with a large percentage of affluent Indian parents aspiring to send their children to foreign universities. The United States, the United Kingdom, Canada, Australia, and Singapore are among the top destinations for Indian students. However, the cost of international schooling can be substantial, potentially consuming a significant portion of parents' retirement savings. A recent report indicates that the cost of a three or four-year degree program in popular overseas destinations can utilize up to 64% of an Indian parent's retirement funds. Despite the financial challenges, many parents are willing to make this investment, driven by the belief that an international education will provide their children with better career opportunities and a global perspective.

While the focus on funding education is understandable, financial advisors often caution against neglecting other important financial goals, such as retirement planning. It's crucial to strike a balance between investing in a child's future and securing one's own financial well-being. Over-prioritizing education savings can leave parents vulnerable in their later years, potentially leading to financial dependency on their children. A more holistic approach to financial planning involves setting clear goals, creating a budget, diversifying investments, and regularly reviewing progress. Consulting with a financial advisor can provide valuable guidance in navigating the complexities of financial planning and ensuring a secure future for both parents and their children.