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How to begin saving for your child's higher education

Sahithi Chittajallu
·2-min read

Primary education in most countries charge nominal amounts or is free. Of course, this is the case with schools and other institutions funded by the government. Private academies charge relatively higher depending upon the quality and facilities they render. While most parents can afford their child’s early education, college and university expenses are relatively tougher for them to manage. This is due to the exorbitant costs associated with academia. College education may almost seem far-fetched for many children with big dreams from middle-class and lower-middle-class families. However, strategic savings and well-planned investments can help parents enroll their children in the institution of their dream.

While opting for a loan seems like the most achievable way, it can become a burden in the long run with sky-high interest rates besides multiple excessive hidden charges. It is safer and more convenient to pay from the pocket. 

Here are some simpler methods you can resort to fund your child's education:


Monthly saving schemes like the recurring deposit/fixed deposit help gather a significant amount down the line. Good interest rates aid high returns. Choose a bank with the best rates for maximum returns.


There are a variety of mutual funds, each serving a different purpose with different interest rates for different tenures. Choose a scheme that suits your needs keeping in mind the time you have until you can liquidate funds for your child’s education.

  • Aggressive Hybrid Funds - This includes investing 75% in equity and the rest in debt. If the time cap is lesser, invest in Aggressive Hybrid Funds to make up for the short duration.

  • Equity Funds - This is the best way to invest your capital for higher returns. Make it a practice to invest regularly for maximum interest rates and profits.

  • You can alternatively invest in organisations according to their size and scalability. They have an array of benefits specific to their company. They are multi-cap funds, mid-cap funds, and small-cap funds.

  • SIP or a Systematic Investment Plan allows you to gradually invest and increase the amounts in smaller measures instead of lump sum amounts.

The costs affiliated with higher education are only skyrocketing by the day. It is important to plan ahead for your child, to estimate the kind of plan that should be opted for and ensure that you are ready to invest in your child’s bright future.

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