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Plan your Children’s Education and their Marriage

Go confidently in the direction of your dreams. Live the life you have imagined

-Henry David Thoreau





Isn’t the thought of having a new member in the family indeed a moment of joy!

The same joyful moment also brings along the thought of planning his or her future education and possibly marriage as well.

Many expecting couples come to me to seek assistance in financial planning.

But is there a need for financial planning even before the baby is born? Is it not too early?

Well, the answer is ‘YES, it is quite necessary to plan your finances even before the baby steps in this world.’ Unfortunately, most of the couples ignore or are unaware of this big ask. Hence, they usually struggle to meet the expenses that follow the kid’s birth. They usually rope themselves in for decades, paying for the loans.

The education cost in India is increasing at a rate of about 10- 15% every year.

With higher dreams and aspirations of making your child a super knowledgeable person, the run

of the mill starts to make the funds available as and when needed.

How much is sufficient?

How much money would be required when my child turns 16-17? Will I be able to garner enough funds to support my child then? How much does it cost to send my child to a good college?

How much does an MBA or a doctorate course costs these days? If I want to send him or her abroad, what will be the cost?

How much can I start investing so that I ensure to fulfill my child’s dreams?

What is the priority that I should set when I think of my child’s education? Should I plan my retirement first or their education?

These are some of the most important and common questions that my clients ask me when they are doing their financial planning.

Such situations may often surface when there is no clarity about the future. So, the parents start looking for options to seek guidance. Authentically, there are no right or wrong solutions. Only good options.

One must start planning to afford decent college fees and higher studies.

Client Goal/Requirement

You would like to arrange ` 10,00,000 for Graduation at 18 and ` 10,00,000 for is PG at 22 and ` 10,00,000 in today’s value.

S.No. Details Graduation PG Marriage

Future Value of Goals

1 Present Value of Goal ` 10,00,000 ` 10,00,000 ` 10,00,000
2 Goal Age 18 22 26
3 Remaining Years for Goal 4 8 12
4 Goal Year 2023 2027 2031
5 Expected Inflation of Expenses 7.00% 7.00% 7.00%
6 Future Value of Goal ` 13,10,796 ` 17,18,186 ` 22,52,192

Utilization of Current Assets

1 Endowment Pollicy + Moneyback ` 10,37,100    
2 Jeevan Mitra + Moneyback   ` 4,94,900  
3 Equity Shares   ` 7,73,132  
4 Current Assets Utilized ` 10,37,100 ` 12,68,032 0
5 Percentage of Goal on Track 80% 74% 0%

Fresh Investment Required

1 Shortfall to met by Fresh


` 2,62,159 ` 4,50,154 ` 22,52,192
2 Start investing after (no. of years)      
3 Stop investing before (no. of years)      
4 Expected Investment Returns 10.40% 12.10% 13.00%
5 Lumpsum Investments after

Current Assets

` 1,76,477 ` 1,80,516 ` 5,19,594
  Monthly Investment (Fixed) ` 4,470 ` 2,882 ` 6,914

Planner Comments/Observations

All the goals related to Child I can be achieved with monthly investments of `14,266/-. We have utilized your existing endowment policies & Money back policies for these goals.

Download Excel here:

Here, one significant point is not to show off your investment

plans to your child. It may only fatten their hopes and make them over-ambitious. They start to think that their parents have the right amount of money for them in the future and so, they also start planning bigger.

However, if the child doesn’t deserve that much money planned for him or her?

financial planning for children education



Why not make the child have great value systems right from early childhood and inculcate great thoughts. The father and mother can only inculcate these values. Based on these values, the child should be able to decide his or her career options. This stage usually comes when the child is in the 9th and the 12th class. At this stage, the child seeks career guidance from his or her school counsellor and you, as a parent, become a part of that new planning process. At this stage, it becomes important to hold their thoughts at the highest level and say, “I support you”.

Still, here are a few steps to make yourself contemplate and start planning:

  1. When to start planning: From the point, you read this text, or when you become aware.
  2. What to do first: Discuss your aspirations with your Furthermore, do some research on how much amount some required to pursue that stream.
  3. Do you need insurance cover: Consult a financial planner to estimate the time value of money and how much would be required based on inflation?
  4. Estimating higher education costs: The best way would be to Google and find out the best avenues of your preferred streams and how much is the total cost for the entire graduation free.
  5. Inflation: Remember that in India, the inflation rate is around 10-15% for education Your financial planner needs to know the current values that you wish to plan, and he shall do the rest of the calculations to estimate future value.
  6. Where to invest: If you have read the earlier chapters, equity diversified mutual funds could be the best
  7. Where NOT to invest: It is difficult to gauge without knowing your risk However, it may be prudent to avoid PPF, Children’s education ULIPs, child education insurance plans, and so on.
  8. Why invest for his/her marriage: Only if you have got sufficient money planned for education, should you plan your child’s
  9. What if you cannot save enough: The amount doesn’t matter right The habit of saving is important.
  10. What if I need more: There is always the scope of taking education
  11. What if I don’t need this amount: Sure, you can use it for your retirement, early retirement or simply towards your wealth creation.
  12. Review: It is important to continuously keep reviewing your investments and goal priorities with your financial

With these ideas, go ahead and make your dreams for your child come true.

Happy Taking care !



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