Rising Education Costs: Parents' Guide to Smarter Financial Planning

• Education costs, especially for international boards and overseas degrees, are outpacing general inflation, making early and flexible planning crucial.
• While SIPs are foundational, they alone may not cover sharp fee increases or currency risks; match investments to timelines by reducing risk as milestones approach.
• Build a safety net with liquid or short-term debt funds to handle unexpected expenses like studying abroad or currency spikes, preserving long-term investments.
• Factor in all 'unknowns' beyond tuition, including living expenses, travel, and currency fluctuations, assuming the final bill will be higher than initial estimates.
• View education loans as a strategic tool rather than a last resort, using them to preserve retirement savings and provide flexibility, and review your plan every 2-3 years.

Why It Matters: Effective education planning requires disciplined investing, a flexible safety net, and regular reviews to adapt to rising costs.