Importance of Child Education in India

Why Child Education Matters

1. Foundation for a Better Life

   
   

   Education is the foundation of an individual’s personal and professional growth. A child who receives a good education is more likely to become financially independent, make informed life choices, and contribute meaningfully to society.

   
   

2. Gateway to Economic Empowerment

   
   

   In a rapidly evolving job market, formal education equips children with the skills needed to access better career opportunities. It also opens avenues for entrepreneurship, innovation, and participation in the global economy.

   
   

3. Enhances Social Awareness

   
   

   Education broadens a child’s worldview. It promotes tolerance, awareness of rights and responsibilities, and respect for diversity. These values are essential in a country as diverse and populous as India.

   
   

Current Scenario of Child Education in India

India has made notable progress in improving access to education over the past two decades. Government initiatives like Right to Education (RTE), Sarva Shiksha Abhiyan, and the Mid-Day Meal Scheme have helped boost enrolment rates and reduce dropouts. However, several challenges remain:

• Learning gaps persist due to inconsistent teaching quality and inadequate resources 
• Dropouts caused by financial constraints or household responsibilities
• Inequality in access to education across rural and urban areas
• Limited digital access in remote locations, affecting online learning

With a growing young population and a dynamic economy, the need for high-quality, future-ready education is more critical than ever.

Rising Costs of Education

Education inflation in India has been rising steadily. Whether it is private school fees, coaching classes, or higher education, costs can increase significantly over time.

Here’s an example of how much educating a child can cost in metro cities^[1]:

• Private school: Approimately ₹30 lakhs for ages 3 to 17
• High School Education: Around Rs.9 lakhs
• College Education: Approximately Rs 4-20 lakhs for an Engineering Degree around ₹8–23 lakhs for a Management Degree
• Finance: A CPA can cost Rs 3,60,000; CMA would cost Rs 80,000-1,20,000 inclusive of training, examination, and IMA membership fees

In 15 years’ time, these costs are expected to rise further — with some estimates suggesting they may grow by 10% each year — making financial planning more important.

The Role of Parents in Enabling Child Education

As a parent, your role in your child’s educational journey is multi-faceted. It extends beyond enrolling them in school or assisting with homework. Here’s how you can make a lasting difference:

1. Encourage Curiosity and Learning

   
   

   Create an environment at home where your child feels encouraged to ask questions and explore topics that interest them.

   
   

2. Focus on Holistic Development

   
   

   Apart from academics, expose your child to sports, arts, and life skills. A well-rounded education prepares them better for the real world.

   
   

3. Provide Emotional Support

   
   

   Be involved in their learning journey. Celebrate their achievements and help them overcome academic pressure with confidence.

   
   

4. Plan Financially for Their Education

   
   

   This is where a structured savings or investment plan, like a child education insurance plan, becomes extremely useful. It allows you to build a dedicated corpus over time, without affecting your other long-term goals.

   
   

Financial Planning for Child Education

Given the unpredictability of life and rising costs, financial planning is not optional—it is essential. Here are some options to consider:

1. Child Insurance Plans

   
   

   These plans combine life cover with savings.  Some child insurance plans also include a waiver of premium, where in case of an unfortunate event (the death of the life assured), the insurer continues the premium payments.

   
   

2. Systematic Investment Plans (SIPs)

   
   

   SIPs allow you to invest a fixed amount at regular intervals into selected mutual fund scheme. Over time, these periodic investments can help build a corpus aligning with your future fund requirements.

   
   

3. Public Provident Fund (PPF)

   
   

   PPF is a long-term, tax-efficient savings option  for conservative investors planning for their child’s future needs.

   
   

4. ULIPs (Unit Linked Insurance Plans)

   
   

   ULIPs designed for child education offer dual benefits—market linked investment and life cover. These can be tailored to your risk appetite and investment horizon.

   
   

   Choosing the right plan depends on your financial goals, current income, risk appetite, and the timeframe until your child begins higher education.

   
   

Benefits of Planning Early

• Power of Compounding : The earlier you start, the more time your investments have to grow.
  
• Affordability : Smaller, regular contributions are easier to manage over time.
  
• Goal-Based Investing : Helps you stay disciplined and avoid using these funds for other expenses.
  
• Protection : Insurance-based education plans ensure your child’s goals are secure, even in your absence.
  

Conclusion

Child education is one of the most valuable investments you can make. In India, where education is seen as a path to progress and social mobility, it is every parent’s dream to provide the best opportunities to their children. But with rising costs and increasing competition, that dream requires more than good intentions—it needs structured planning and timely action.

By understanding the importance of child education and planning financially for it early, you can ensure that your child not only dreams big but also has the means to achieve those dreams.

Sources:

https://economictimes.indiatimes.com/news/india/the-cost-of-raising-a-child-in-india-school-costs-30-lakh-college-a-crore/articleshow/93607066.cms