Baby’s here, what next?
Lately, I’ve been hearing some great news, friends and family planning for a child, expecting, or welcoming little ones. Meanwhile, Moneybar is slowly buzzing with new conversations, just the other day, a user shared about the NPS Vatsalya Scheme available for children right from birth.
Hearing all these stories and discussions gave me the urge to write this piece. A question that I believe lingers in the background for every parent,” How do we plan for the child’s future, especially education?”
Education costs in India have been rising fast. A good private school today can cost about Rs. 1–3 lakh per year. For engineering or medical degrees, the figure can go between Rs. 5–20 lakh in private institutions. And if your child aspires to study abroad, it could easily cross Rs. 50 lakh.
This sounds overwhelming, yes! But let’s not forget: time is your biggest ally.
For eg: If you start saving Rs. 5,000 a month when your child is born, assuming a 10% annual return, you could have around Rs. 35 lakh by the time they turn 18.
Start with Rs. 10,000 a month, and that grows to nearly Rs. 70 lakh. That’s the power of small, consistent steps and compounding.
Equity funds have historically given better returns than fixed deposits or savings accounts over long periods. Some options new parents might explore include starting a SIP in equity mutual funds, opening a Public Provident Fund (PPF), or looking into education-focused schemes
In the early years, mutual funds through SIPs can work well, as you have 15–18 years to ride out market ups and downs.
As the child gets closer to college age, part of the money can be moved into safer options like debt funds or fixed deposits. PPF is another steady choice, though it comes with a 15-year lock-in. Insurance products can provide protection, acting as a safety net rather than the main savings tool. Education loans are available and can serve as a backup plan if needed.
This and many more conversations are already happening on Moneybar: sharing experiences and learning simple ways to navigate life’s important decisions.
Joining means you won’t miss out. All you have to do is download app from playstore/appstore, sign up and request to join!
New parents! do what you can, laugh when you must, repeat:)
Paweii Kayina Founder
& CEO, Moneybar
Wednesday, September 10, 2025