If Your Child Is Born Today, You Could End Up Spending Over ₹1 Crore on Their Education — Here’s the REAL Breakdown
For many parents in India, the dream of giving their child the best education is becoming increasingly expensive. If your child is born today, the total cost of their schooling, coaching, transport, and higher education can easily cross ₹1 crore — and this isn’t a sensational number. It’s the result of a simple yet shocking calculation that takes into account a factor most parents overlook: education inflation, which has been rising silently at 10–12% every year.
This blog breaks down the reality behind these rising costs and explains why planning early is no longer an option — it’s a necessity.
The Silent Rise of Education Inflation: 10–12% Every Year
While salaries in India grow at an average of 6–8% annually, education costs are racing ahead at almost double the pace. Schools revise their fee structures every year, colleges increase their semester charges, and coaching institutes raise fees based on competition.
At a 10–12% annual increase, today’s affordable fees turn into tomorrow’s massive burden.
For example:
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A preschool charging ₹20,000 per month today could charge ₹65,000–₹75,000 per month by the time your child is in Class 12.
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A degree that costs ₹10 lakh today could cost ₹45–₹50 lakh in 18 years.
This widening gap between income growth and education inflation is why parents feel financially stretched — even when they’re earning well.
Breaking Down Preschool to Class 12 Education Costs
Let’s start with something most parents experience first-hand: school fees. The average urban Indian parent pays:
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Preschool: ₹15,000–₹25,000 per month
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Primary School: ₹8 lakh – ₹12 lakh (over 5 years)
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Secondary & Senior School: ₹15 lakh – ₹25 lakh (over 7 years)
Add to this:
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Books & Uniforms — ₹20,000–₹40,000 per year
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Transport — ₹2,000–₹5,000 per month
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Annual Charges / Activity Fees — ₹25,000–₹60,000 per year
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Events, trips, competitions — ₹10,000–₹30,000 per year
If your child studies in a top-tier private school, the numbers can go even higher.
By the end of Class 12, a middle-class or upper-middle-class family could spend ₹25–35 lakh, and premium schools could cross ₹50 lakh — without counting inflation.
Coaching, Extracurriculars, and Hidden Costs Parents Forget
Modern parenting isn’t just about school fees. There are so many additional layers:
Academic Coaching
Even average-performing students today often need support:
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Tuition for major subjects
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Online learning subscriptions
Coaching can cost ₹1 lakh – ₹4 lakh per year, depending on the level and the city.
Extracurricular Activities
Parents want holistic development — but it comes at a price:
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Summer camps
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Robotics classes and coding workshops
These can add ₹30,000–₹1 lakh per year.
Digital Devices & Internet
Tablets, laptops, online classes, high-speed WiFi — these were optional once, but now they’re essential. Expect ₹50,000–₹1 lakh every few years.
Higher Education: The Biggest Expense of All
This is where the real financial shock hits.
In India:
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Engineering degree today: ₹8–₹12 lakh
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Will cost in 18 years: ₹30–₹50 lakh
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Medical degree today: ₹50 lakh–₹1 crore (private)
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Will cost in 18 years: ₹2–₹3 crore
Studying Abroad:
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Average US degree today: ₹40–₹60 lakh per year
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In 18 years: ₹1 crore+ per year
Total possible cost: ₹3–₹4 crore for a four-year programme.
Even for countries like Canada, UK, and Australia, the cost will almost double by the time your child turns 18.
How the Total Crosses ₹1 Crore: A Simple Illustration
Let’s assume:
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School fees + extras till Class 12: ₹40–50 lakh
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Coaching (10+ years): ₹10–15 lakh
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Devices, transport, uniforms, activities: ₹10 lakh
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Higher education in India (18 years from now): ₹40–50 lakh
Total: ₹1 crore – ₹1.25 crore
This is a realistic estimate for most urban families.
If your child studies abroad, the total jumps to ₹3–₹4 crore.
Why Most Parents Get the Calculation Wrong
Because they only calculate today’s fees, not future fees.
For example:
₹20,000 per month preschool today
Becomes
₹62,000 per month in 12 years at 10% annual inflation
Most parents underestimate this because a 10% jump sounds small — but over years, it compounds exponentially.
The Smart Move: Start Planning Early
Financial advisors across India agree on one thing:
The earlier you start saving, the less pressure you feel.
Here’s what parents can do:
✔ Start an SIP the month your child is born
Even a small monthly SIP of ₹5,000–₹10,000 can grow massively over 18 years with compounding.
✔ Increase your SIP by 10% each year
This matches inflation and keeps your plan robust.
✔ Don’t depend on savings accounts
Regular savings don’t beat education inflation. Investments must grow at 10–12% per year.
✔ Use child education plans, mutual funds, and long-term instruments
These help to systematically build a large education corpus.
Our Education Cost Calculator: Know the REAL Number
To help parents understand the future cost of their child’s education, we’ve built a calculator that breaks down:
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School fees
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Coaching
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Transport
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Uniforms
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Activity charges
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Annual fees
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Higher education (India or abroad)
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AND education inflation
With one click, parents get a realistic 18-year projection, so they can plan better and avoid financial stress later.
Final Thoughts: A Crore Sounds Scary — But It’s Manageable with Early Planning
Raising a child in India has never been cheap, but the pace at which education costs are rising makes financial planning absolutely essential.
The good news? With smart, early investments, building a ₹1 crore education corpus is achievable for most families.
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