Why Starting SIPs Early Is the Only Way to Beat the Future Cost of Education?
By Akhil Chugh
Date Nov 23, 2025
Every parent dream of giving their child the best education. But with education inflation rising faster than general inflation, that dream will soon come with a very heavy price tag.
This is why starting a SIP early is not just a smart choice — it is the only choice if you want to stay ahead of skyrocketing education costs. Let’s decode and understand how the future looks for parents who plan early and and how expensive it gets for those who don’t.
Dreams vs Reality: What Will Education Cost in 2045?
Education in India is no longer an affordable dream — it’s a high-inflation, fast-growing expense that will only intensify over the next two decades.
Here’s what the numbers reveal when we project costs using a 7% annual education inflation rate:
Illustration: Projected Education Costs (2025 vs 2045)
What This Means for Parents?
A medical degree that costs ₹50 lakh today will cost ₹2 crore in 20 years.
Engineering will cross ₹46 lakh, and an MBA will touch ₹31 lakh.
This isn’t fear. This is math.
Inflation, if ignored, will swallow your savings faster than you can catch up. This makes planning for your child’s education more crucial.
The Cost of Delay: How Much Does Waiting Really Cost You?
Parents who delay investing end up paying dramatically more for the same goal.
Let’s compare three parents — Mr. X, Mr. Y and Mr. Z — who all want to accumulate ₹50 lakh for their child’s education at age 18.
Their only difference is how early they start investing in mutual funds for it.
Key takeaways:
- Starting at birth, Mr. X invests just ₹14.25 lakh in total.
- Delaying till age 6, Mr. Y invests ₹22.56 lakh — ₹8.3 lakh more.
- Starting at age 12, Mr. Z must invest ₹34.38 lakh — a staggering ₹20 lakh more than Mr. X.
All three reach the same ₹50 lakh goal.
But what they pay to get there is drastically different.
This difference?
It is the cost of delaying the investment. A silent penalty every parent pays for waiting.
Compounding Rewards Long-term Investors
Compounding rewards long-term investors — and punishes late starters.
When you start early:
- Your money works longer
- Your SIP amount is smaller
- Your total contribution is lower
- A larger share of your final corpus comes from growth, not your pocket
When you start late:
- You fight against time
- Your SIP shoots up
- You must invest much more
- Returns contribute far less because the compounding window is short
Time doesn’t add to wealth — it multiplies it.
Conclusion
Education costs are rising whether we prepare for them or not.
The only difference is:
- Early planners control the future.
- Late planners chase it — at a much higher price.
If you want your child to dream without limits, the journey begins today. A small SIP started early can grow into a powerful financial shield for your child’s future.
The best gift you can give your child is a well-planned education — and the best time to start planning is right now.
Ready to secure your child’s dreams?
Connect with us and begin your SIP now.
Download our mutual fund app & start investing for your long-term financial goals.
Happy Investing!