Mumbai: EduFund, India's pioneering full stack product for education planning has launched the "Bachao Aur Padhao" campaign. This initiative aims to address the escalating costs of education in India and ensure affordable access to quality education for all families.
India's education sector is experiencing rapid expansion yet it faces a formidable challenge: soaring education costs. With annual inflation rates in education ranging between 10-11 per cent, significantly outpacing wage increases, families aspiring for quality education are under increasing financial strain. This trend not only threatens the government's ambitious education enrollment targets but also jeopardizes the sustainability of the educational growth trajectory.
The "Bachao Aur Padhao" campaign advocates for proactive measures to address these rising costs through dedicated education savings strategies. Costs at premier institutions like IIMs and IITs have surged by up to 147 per cent and nearly doubled for MBA and B.Tech programs, respectively, intensifying the affordability crisis. For households earning less than Rs 5 lakhs annually, these rising costs often result in higher dropout rates and heightened dependence on education loans.
"In a country like India, education provides the pathway to a better life. Educating parents on the need to financially plan and save is imperative, especially in the current landscape where fees threaten this pathway" said EduFund co-founder and CEO Eela Dubey. "Through initiatives like 'Bachao Aur Padhao,' we aim to promote strategic financial planning. Our hope is to make parents financially literate by teaching them how to invest and where to invest for this incredibly important goal. We want to make it less scary!”
As per research done by EduFund, mutual funds emerge as a practical solution for parents seeking to build substantial educational funds. Equity mutual funds, for example, have historically outperformed traditional savings instruments, offering a robust avenue for long-term wealth accumulation to fund education aspirations. Offering professional management, diversification, and potential for higher returns, mutual funds are well-suited for nurturing significant education savings over time.
This path breaking campaign by EduFund urges the government to facilitate goal-based investing in education by introducing tax incentives akin to successful international models such as the USA's 529 plan and the UK's Junior ISA. These incentives can incentivize parents to save for their children's education systematically, reducing reliance on loans and ensuring equitable access to quality education nationwide.
