How a financial planner may help you invest for children's education

Saving and investing early allows families to spread out expenses over time and build a corpus

As education costs rise, families are turning to professional financial planners for advice. Such professionals’ advice parents on how to build a corpus for their children’s education.

 

“The rising cost of private or semi-private education in India and for certain international destinations – from primary schools to universities – has become an immense financial challenge for families,” said Jaideep Kewalramani, COO and head of employability business at TeamLease Edtech.

 

“Over the past decade, average school fees have jumped by around 150 per cent, while some universities have reported tuition hikes of up to 200 per cent. These figures reflect both the increasing demand for quality education and the significant operational costs that institutions face,” he said.

 

 

Importance of early planning

 

Early planning allows families to spread out the financial burden over time and build savings. By doing so, they can take advantage of compound interest and investment growth, which can significantly enhance their ability to cover future educational expenses.

 

How taking advice from financial planners may help:

 

Early assessment and goal setting

 

They help families calculate the corpus needed for education

 

Create customised savings plans based on risk appetite and time horizon

 

Investment strategy optimisation

 

Design diversified portfolios combining equity, debt, and other instruments

 

Recommend education-specific savings instruments.

 

Guide families on tax-efficient investment options.

 

Risk management

 

Suggest appropriate education insurance plans

 

Create contingency funds for unexpected expenses.

 

Plan for alternative funding sources if primary investments underperform

 

“An often overlooked yet highly effective approach to managing education expenses is the degree apprenticeship model. By combining education with on-the-job experience, degree apprenticeships allow students to earn while they learn, thereby reducing the immediate financial burden on families,” said Kewalramani.