Given the rising cost of living and the pace of inflation, parents should exercise caution when it comes to their children’s future in this expanding market.

The rate of inflation in education in India is approximately 12%, resulting in a doubling of school and college fees every six years.

Let we use the example of IIM university tuition. The fees increased from 5 lakh in 2009 to 15 lakh in 2014 and more than 20 lakh in 2024.

Making sensible investments and savings decisions is now crucial for a child’s future education.

Neha Nagar, an Indian entrepreneur and creator of business and financial content who was named one of Forbes India’s “India’s Top 100 Digital Stars,” has provided some insightful advice on how to reach your goal of saving Rs 1 crore by the time your children turn 18.

Neha advises creating a 3-in-1 child account, which consists of a trading, demat, and bank account.

She recommends a monthly contribution of 6500 rupees from both parents, for a total of 13,000 rupees.

Through Nifty ETFs like NIFTY BeES, Nifty 50 ETF, and NIFTY ETF, this sum should be invested in India’s NIFTY50.

Parents can save 28 lakh in 18 years by investing Rs 1.56 lakh a year.

Neha asserts that parents can receive one crore rupees by the time their children turn eighteen, given the historical average returns of 12% for NIFTY50 over the long term.

She also suggests boosting the yearly investment by 10% to guarantee the kids have more than Rs 1 crore by the time they turn 18.

This financial plan fortifies the savings for expenses such as marriage, travel, and higher education, while also making future studies more accessible.