How much do you spend on Education?

There has been a 4.6x increase in education spending in India in just 12 years.

With generational change, the educated middle class is becoming increasingly aware of the importance of education.

Every parent wants to give their child the best possible opportunities.

As a result, education is now one of the fastest-rising household expenses.

According to MoSPI (Ministry of Statistics and Programme Implementation) data:

In FY12, Indian households spent ₹1.8 lakh crore on education.

By FY24, this figure rose to ₹8.43 lakh crore.

That is a 4.6x increase in just 12 years.

Education’s share in private consumption increased from 3.1 percent to 4.1 percent, despite inflation and job insecurity.

Per capita spending on education rose from around ₹1,500 in FY12 to over ₹6,100 by FY26.

This tells us one thing clearly.

Families are no longer willing to compromise on education, regardless of economic uncertainty.

The reality of Education Spending at school level

Across Mumbai, Delhi, Pune, and Hyderabad, fee structures from premium CBSE, ICSE, IB, and international schools show that 15 years of schooling can cost over ₹15 lakh in tuition alone.

This excludes books, uniforms, transport, activities, and admission fees.

School education today costs what an MBA used to cost.

What happens if you delay planning?

Scenario 1: No education planning

Assume a child enters Class 1 in 2026.

If annual school fees start at ₹1.5 lakh and rise at 10 percent per year, total school fees till Class 12 can easily cross ₹22–25 lakh.

Add undergraduate education in India at ₹10–15 lakh, or overseas education at ₹40–60 lakh.

By the time the child turns 18, total education costs can range from ₹35 lakh to over ₹1 crore.

Without planning, parents are forced to arrange large lump sums at the last minute.

This often leads to loans, asset sales, or compromised choices.

Scenario 2: Planning from birth with disciplined investing

Now consider starting when the child is born.

A structured education plan typically includes:

•⁠  ⁠monthly SIPs for long-term growth

•⁠  ⁠a small lump sum contribution in the early years

•⁠  ⁠investments aligned to a 15–18 year timeline

For example, a monthly SIP of ₹7,000–₹10,000 started at birth, along with periodic top-ups in the first 5–6 years, can build a meaningful education corpus by college age.

Withdrawals can then be planned annually for school fees and later as lump sums for higher education.

The difference is not just returns.

It is certainty.

Early planning allows compounding to do the heavy lifting.

Late planning forces parents to do it themselves.

What if you start in between?

Yes, you lose the compounding advantage.

If your child is already 12, the truth is simple.

The strongest compounding years are gone.

Ideally, education investing should begin at birth.

Starting 12 years late can reduce the potential corpus by more than 50 percent.

But here is what most parents miss.

You may have lost compounding time, but you have not lost the chance to plan.

With higher monthly contributions, the right products, and disciplined execution, education goals can still be secured.

Final thought

Education is no longer an expense you manage year by year.

It is a long-term financial commitment that demands early, structured investing.

The choice is simple:

Plan early and let money grow quietly, or delay and pay loudly later.

If you want a clear projection of your child’s education cost and a practical plan to fund it without stress, now is the right time to start.