Is SSY good for child education?

Yes, Sukanya Samriddhi Yojana (SSY) is excellent for debt allocation with 8.2% tax-free returns, but it should not be 100% of your portfolio due to education inflation beating debt returns.

How much does engineering cost in India in 2025?

In 2025, a 4-year engineering degree costs ₹15-20 Lakhs. With 10% inflation, this will rise to ₹60 Lakhs in 15 years.

Child Education & Marriage Planning 2026: The ₹1 Crore Cost Reality

When your child is born, you see their tiny fingers and promise them the world. "My son will be a Doctor." "My daughter will go to Harvard."

Emotions are beautiful. But the bank account doesn't run on emotions. It runs on cold, hard math. And the math of education in India is brutal.

The Silent Killer: Sectoral Inflation.
Vegetable prices rise at 6%. Electronics prices actually fall. But Education costs rise at 10% to 12% every year. If you are saving in an Endowment Plan giving 5% returns, you are actively destroying your child's future.

Chapter 1: The Sticker Shock (2040 Reality)

You think ₹25 Lakh is a lot for an MBA? Wait till you see the numbers for 2040, when your newborn hits college age.

The Future Cost of Education (Scary Numbers)

Degree	Cost Today	Cost in 15 Yrs	Cost in 18 Yrs
Degree	Cost Today (2025)	Cost in 15 Years (10% Inflation)	Cost in 18 Years (10% Inflation)
Engineering (India)	₹15 Lakh	₹63 Lakh	₹83 Lakh
MBA (India)	₹25 Lakh	₹1.04 Crore	₹1.38 Crore
Masters (USA)	₹60 Lakh	₹2.50 Crore (12% Inf)	₹3.50 Crore (12% Inf)
Medical (Private)	₹1 Crore	₹4.17 Crore	₹5.50 Crore

*Note: International education inflation is calculated at 12% due to Rupee Depreciation against Dollar.

You won't build wealth with "Savings". You need "Wealth". And Wealth only comes from Equity.

Chapter 2: The Investment Strategy

Since the goal is 15+ years away, you must take risk. If you put money in FD (7%) while inflation is 10%, you are losing 3% purchasing power every year.

The Winning Portfolio

Nifty 50 Index Fund50%
Mid Cap Fund (Active)20%
Sukanya Samriddhi (Girl)/PPF20%
Gold (SGB)10%

Target Return: 12-14% (Beats Inflation)

The Losing Portfolio

Child Insurance Plans80%
Bank FD20%

Target Return: 5-6% (Fails Inflation)

Chapter 3: Sukanya Samriddhi Yojana (SSY)

If you have a girl child (below 10), this is the best debt product in India. Period.

Why it Wins (EEE Benefit)

Exempt: Investment is tax-deductible (80C).
Exempt: Interest earned is tax-free.
Exempt: Maturity amount is tax-free.
High Rate: Currently paying 8.2% (Govt backed).

The Restrictions

Lock-in: Maturity is at 21 years of age (or marriage after 18).
Cap: Max investment ₹1.5 Lakh/year.
Liquidity: Cannot withdraw for trivial reasons.

Strategy: Max out the ₹1.5L limit immediately every April. Use it as the "Safe Stability" bucket for her marriage/education.

Chapter 4: The Roadmap (Age by Age)

Age 0-10: Aggressive Accumulation

Time is on your side. Go 80% Equity. Start an SIP of ₹15,000 for education + ₹5,000 for marriage. Do not touch this money. Let compounding go wild.

Age 11-15: The Course Correction

Reduce Equity to 60%. Start moving profits into Debt/SSY. This is when you assess the child's aptitude. Are they showing signs of "Ivy League" potential? If so, you need to double your SIPs.

Age 16-18: The Safety Latch

Education is 2 years away. Move everything to Debt.You cannot afford a market crash now. Shift the corpus to Liquid Funds or FDs. Ensure liquidity for admission fees.

Chapter 5: Why Education Loans are Genius

Indian parents have an ego issue: "I will pay for everything".Don't be a martyr.

Taking an Education Loan (even if you have the money) is smart because:

Tax Benefit (Sec 80E): The entire interest component is tax-deductible. There is no upper limit (unlike 80C). If you are in the 30% slab, your effective loan interest drops drastically.
Responsibility: It teaches the child the value of money. They take ownership of their degree and career ROI.
Credit Score: Repaying it builds their CIBIL score early in life.
Liquidity: You keep your retirement corpus safe. You can pay off the loan later if needed.

Your Child needs a Parent, not a Financier.

Don't kill your own retirement to fund their education. The best gift you can give your child is not a degree, but the freedom from having to support you in your old age. Plan for both.

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