Monday 13 November 2023

A Comprehensive Guide to Securing Your Children's College Future

Congratulations on the birth of your angel-like child! It is natural to start dreaming about their future, and you, like all parents dream of your child becoming a doctor, CA, scientist, or engineer.

I often meet with parents who are worried about the cost of college. Yes, it’s a hard-hitting reality that college fees are rising every year, and student loans can have a lasting impact on your children’s financial well-being. That’s why it’s important to plan and save early for their education.

The good news is that there are several ways to save for college, and even small amounts of money can add up over time.

Saving early is critical for your children’s education. By starting to save right after your child is born, you can have enough time to build a substantial fund for their graduation and higher studies. You can also benefit from the power of compounding, which means your money grows faster over time as it earns interest on interest.

Here are simple steps to have a stress-free LOAN LESS Education for your beloved child.



The first step in planning for your children’s college education is to find out how much it will cost in the future and actually the trickiest part.
Make use of the innumerable online resources like College Fees Calculator and do not forget to consider the effect of inflation on the fees. To be even more specific, add the Boarding fees, travel expenses, and tuition fees without fail.



Now that you know HOW MUCH you need, start a savings and Investment Plan to achieve the Education Expenses Goal. Saving a little bit every month can make a big difference in the long run. The earlier you start saving, the more time you must benefit from the power of compounding. Compounding is when your money earns interest, and then your interest earns interest, and so on. This way, your money grows faster and faster over time.

For example,
if you save ₹1,000 per month at a 12% annual interest rate, you will have ₹15.6 lakh in 10 years,
₹67.3 lahks in 20 years, and
₹2.9 crore in 30 years.

But if you start saving 10 years later,
you will only have ₹57.3 lakh in 20 years, and
₹1.4 crore in 30 years.
That’s a huge difference and underscores the huge impact of starting early.



Navigate the array of savings options tailored to the Indian context, including options like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Equity-Linked Savings Scheme (ELSS) & ULIPs.
Striking a good balance between capital safety and returns is an important consideration for any investor.
It is important to note that every savings option has its own pros and cons. It is important to carefully consider your individual needs and financial goals before choosing a savings option. It is also a good idea to consult with a financial advisor to get personalized advice.


Rebalancing your portfolio

Over time, the performance of different asset classes can vary. This can cause your portfolio to become unbalanced, meaning that it no longer reflects your desired risk tolerance and investment goals. Rebalancing your portfolio involves selling some of your winners and buying more of your losers to bring your portfolio back into line with your desired asset allocation.

Increasing or decreasing your investments

As your financial situation changes and your goals evolve, you may need to increase or decrease your investments. For example, if you get a raise at work, you may decide to increase your contributions to your retirement account. Or, if you are approaching your child's college tuition deadline, you may decide to start decreasing your investments in stocks and moving more of your money into debt funds.

Moving to debt funds as you approach your investment goal.

As you get closer to the year when you need your investment, it is important to start moving your money into debt funds. Debt funds are less volatile than stock funds, so they can help to protect your capital.


Numerous Savings & investment plans offer tax advantages. Explore options like the Equity-Linked Savings Scheme (ELSS), Public Provident Fund (PPF), ULIPs and National Pension System (NPS) to qualify for tax deductions. Use these to maximum effect and leverage your savings.
These tax benefits help you reduce your outgo towards taxes and increase your savings.


There are several scholarships and grants available to help students pay for college in India. Along with you, make sure your child joins you in searching for and researching various scholarships and grants that are available.. Many schemes like

National Talent Search Examination (NTSE)

Kishore Vaigyanik Protsahan Yojana (KVPY)

Dr. APJ Abdul Kalam Global Skills Scholarship

Start with your search early,
check with your school/college,
Talk to your teachers and education counselors.


Children’s education is a non-negotiable goal.

Planning it earlier can give you more options and flexibility for your child’s education. You can choose the best college, course, and career for your child, without worrying about the financial burden. 
Saving for college can be a daunting task, but it is worth it in the long run. By starting early and following these tips, you can help your children pursue their college dreams without the stress of student loans.


So, my dear friends, fret not…  it's relatively easy if you follow the above tips and make sure you stick to them same.
All the very best,

Srikanth Matrubai

Author – Don’t Retire Rich

Qualified Personal Finance Professional



All the best,
Srikanth Matrubai
Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. 

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A Comprehensive Guide to Securing Your Children's College Future

Congratulations on the birth of your angel-like child! It is natural to start dreaming about their future, and you, like all parents drea...