What is Child Education Planner?

Providing your child with an appropriate education is both a duty and a long-term financial investment. Good schools are not inexpensive, and even preschools now have waiting lists! Not only for students, but also for parents who are trying to provide their children with the greatest education possible.

You may win this marathon by miles if you have a child education strategy in place! With a child investment plan in place, you can gradually build a comfortable nest egg for your children’s important life milestones, such as college education at prestigious institutions, healthcare, international education, marriage, and so on, as well as provide them with financial security in the event of unforeseen circumstances.

Child Education Planning Calculator



Expected Education Cost

The Child Education Planning Calculator, often known as a child education planner, is an online calculator that may assist parents in calculating the amount of money they will need for their children’s education and other necessary requirements over time.

You may receive a real-time estimate of the money you need to set away for your child’s education with a child education calculator. The kid education calculator employs a method that considers variables such as predicted inflation, your children’s present age and when they will want the funds, and the current amount you have invested or saved for their benefit.

If your educational aspirations for your children are unclear, saving for their education might be difficult. Consider whether your children want to follow a professional course such as engineering or medical, and if so, whether they want to do so at a top university in the nation or move overseas for additional courses such as a Masters’ degree or MBA. Many youngsters today desire to study uncommon occupations such as textile design, graphic design, art history, languages, and other topics at prestigious universities in distant locales.

In India, even earning a traditional professional degree might be challenging. Professional courses such as engineering, law, medicine, and other fields can cost up to a few lakhs per year, depending on whether they are taken at a national institute such as NLU or AIIMS or at a prominent private university.

The cost of education covers not only the tuition but also other necessary expenses such as lodging and board, eating, extracurricular activities, and so on. Even when on scholarship, students bear the majority of the costs of hostels and campus living accommodations. This entails spending an extra lakh or two each year on necessities, which is the current standard.

How Does A Child Education Planning Calculator Work?

The kid education planning calculator calculates the accumulated corpus at the time of the child’s higher education using the concept of future value. The formula is as follows:

FV = PV (1+R)^N FV

FV =Future Value
PV = Present Value
R = Rate of return on the investment
N = Duration or time-frame of the investment.

For example, if your child is three years old and will be in college when he or she is 18, you must calculate how much money your child will require 15 years (18-3) from now.

Assume that the current cost of schooling for a given course is INR 8 lakh. Using the kid education calculator and assuming a 6% inflation rate, the future cost of schooling will be as follows:

PV =8 Lakh
R= 6%
N= age of child at the time of college – present age of child = 15 years
FV = 8,00,000 (1+0.06)^15 = ₹ 19,17,247

As a result, when your child starts college, you’ll need ₹19,17,247.

Let’s pretend you haven’t put any money away for your children’s education till now. You may determine the length of investing in months if you start a kid investment plan today, assuming a return of 7% per year and using the PMT Function in Excel (7/100/12) to convert this return to a monthly return rate. Hence,

15*12 = 180 months
PV = 0
FV= ₹ 19,17,247

Using FV = PV (1+R)^N FV , we get a value of ₹6,049.

To meet your child’s future educational demands, you’ll need to save $6,049 every month for 15 years. This is the future value formula that an online kid education planner uses to figure out how much money you’ll need for future schooling expenses.


Que.1 How do educational plans for children work?

Ans. A Child Education Plan is a type of insurance that lets you preserve your funds while also ensuring the future of your child. The plan allows you to save your money and then utilise it for your child’s education in instalments or all at once.

Que.2 What is the significance of educational planning for children?

Ans. By investing in a kid plan, you may effortlessly save money each month and set aside a portion of it for your child’s bright future. It enables you to form a habit that pushes you to save money consistently over time.