Beware of sky rocketing costs of education....

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com) 

Beware of sky rocketing costs of education:

The cost of education is definitely sky rocketing and it would continue to do so in the future as well... Any parent who has put in their kid in the KG in the recent times would vouch for it. Starting from the basic education till the professional degree or foreign degree, the costs are expected to zoom in the coming years. 

The scenario is definitely alarming when compared with our student days and hence a separate plan for children's education is imperative keeping this trend in mind...


Recently a survey was conducted in the US on this subject and the results are startling for us to see.

 http://www.zillow.com/blog/2011-09-07/homes-for-the-price-of-4-year-college-tuition/

One of their key findings is that college costs in the US have nearly tripled since 1980. Throughout the recession, that rate has jumped as local governments cut higher education spending, leaving the universities and thus, students and parents, to shoulder more of the cost. 


We can certainly draw similar comparison out here in India and also given the fact that more number of children may opt to go to the US for their higher education in future. Both ways the study is relevant.

In my earlier blog updates, had made some estimates on the future costs of education and here is just a recap of them for your perusal...

• If you were to admit your child now into a good college and spend about Rs 7.5 lakhs for the under graduate professional education, can you imagine what would be the same cost look like after 15 years??? 

 Rs 61 lakhs

• If you were to spend about Rs 15 lakhs for your child to pursue a foreign degree now, can you imagine what would be the same cost look like after 15 years???

 Rs. 1.23 Crores

If you are astonished with these estimates, don't be shocked if the actual costs are above these estimates in the future.... It's very much a possibility.

Plan for your children's education NOW....

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)