Child Education Calculator

Child Education Expense Planner: Plan Child's Future Expense

Picture this: your little one, right now, with those big, curious eyes, maybe they're building a tower of blocks, or drawing a rocket ship. That's not just play; that's the beginning of their dreams taking shape. And you, their parent, you're the architect of those dreams.

We all know in India, education is like that strong foundation we build our homes on. It's how we give our kids wings to fly. But let's be real, those wings come with a price tag, and it keeps getting bigger! It's like going to the market – remember when groceries were so much cheaper? That's inflation, sneaking in and making things more expensive.

Now, you don't need a fancy finance degree to figure this out. You just want to know, 'How much do I need to save so my child can chase their dreams?' That's where our little helper comes in. Think of it as a friend, sitting with you over a cup of chai, breaking it down, nice and easy.

Just tell it: 'My kid wants to be a doctor, and they'll be in college in 15 years.' It'll do the math, like a wise aunt who knows all the family secrets, and tell you:

'Right now, that doctor's degree costs this much.'
'But in 15 years, with prices going up, it'll cost this much.'
'You've saved this much, and you need to save this much more every month.'

It's like planning a big family wedding – you want to know all the costs upfront, right? And because we know you might have more than one dream to nurture, you can plan for two kids at once, like two little birds in the same nest.

No confusing charts or complicated jargon. Just simple, honest numbers, helping you figure out how to save little by little, like putting money in a 'gullak' every month.

Why Plan for Child Education?

• Rising Education Costs: Education inflation often outpaces general inflation. What costs ₹6 lakh today for an engineering course could be ₹14.4 lakh in 15 years!
• Avoid Debt: Proper planning reduces your reliance on loans, which can disrupt other financial goals like retirement.
• Flexibility: Start small (even as low as ₹500) and increase your investment over time as your financial situation improves.
• Prioritize Savings: Education is a non-negotiable goal. This calculator helps you prioritize savings and choose the right investments.

Benefits of Using Our Calculator

• Estimate Future Costs: Understand how much college or other courses could cost in the future.
• Calculate Investment Needs: Determine how much you need to invest regularly to reach your target amount.
• Choose Suitable Investments: Estimate the required monthly savings, and the corpus helps you identify appropriate investment avenues and mutual fund schemes.

How to Use the Child Education Plan Calculator

• Current Age of Child: Enter your child's current age in years. This value is crucial as it determines the investment duration until your child requires funds for higher education.
• Age When Child Will Go for Higher Education: Input the age at which you expect your child to start higher education. This helps calculate how many years you have left to save and invest.
• Expected Annual Rate of Return (P.A.) (%): Specify the expected annual rate of return on your investments. This percentage reflects how much you anticipate your savings will grow each year.
• Present Cost of Higher Education (₹): Enter the current estimated cost of your child's higher education. This figure serves as the baseline for future calculations.
• Inflation Rate (%):Input the expected inflation rate for education costs. This rate is essential for estimating how much the cost of education will rise by the time your child is ready to enroll.

Example Calculation

For instance, if your child is currently 5 years old and will start higher education at age 18, with a present cost of ₹10,00,000, an expected annual return of 8%, and an inflation rate of 6%, the calculator will help you determine:
The future cost of education when your child turns 18.
The monthly savings required to meet that future cost. Using these inputs, the calculator provides a clear financial roadmap, helping you plan effectively for your child's educational future.