School fees have experienced multiple hikes in the past two decades in India. Did you know that private schools in India raised the price of tuition fees by 10% during the coronavirus pandemic? Shocking, isn’t it?
But the tuition fees aren’t entirely responsible for the increased cost. Just as inflation affects the cost of tuition; it affects the costs of additional school fees that parents have to pay.
What are these additional school fees? Let’s find out!
Additional school fees that parents must save for
Tuition fees are the basic amount you need to pay for your education. As your child moves to the senior class, this amount tends to increase.
Schools usually charge this amount once every three months. Although it is the most significant chunk of the total amount, it still doesn’t equal half of the total amount paid. It can be somewhere around 50% to 60% of the total fees being paid.
Academic books and school uniforms
When your child goes to school for the first day, they are asked to get certain books by the prescribed authors.
Most of the time, schools collaborate with a shop that provides all these requirements. Parents and students tend to buy these necessities from the prescribed store.
Similarly, school uniforms can be expensive and can add to the total cost of sending your child to a good school.
Transportation costs
Transportation is the next area where you have to pay a lot. Fuel prices have been rising every single day. In India, most parents prefer sending their children to school on public transport such as vans, buses, etc.
According to a survey conducted recently, transportation cost is the third-largest contributor to the overall educational expenses of your child. It can go 12% to 15% of the total fees.
Tips to avoid overspending
Infrastructure costs
Every parent wishes to send their child to a school that provides good learning and has a good infrastructure. All the schools’ primary goal is to build new buildings in the first 20 years of their establishment.
The infrastructure would include new facilities, science labs, computer labs, games room, auditorium, etc. These infrastructure setups are some of the most vital parts of an educational institution.
Schools charge parents maintenance and accessibility fees for these. It is usually taken once every year at the beginning of the session accounting for almost 10% to 12% of the total fees paid in the year’s first half.
Admission fees
When your child is new to a school, you should pay an additional amount in the name of admission fees. This amount accounts for a significant chunk of the total cost.
According to a survey, it accounts for the fifth largest head regarding school fees. Furthermore, when your child moves from primary to senior classes, you are supposed to pay the re-admission fees for your child.
This amount varies significantly from one school to the other. Usually, it accounts for 8% to 10% of the total fees paid.
Tax Benefits on Child Education Fees
Activity and laboratory fees
Schools try to make learning interactive for your child. For this purpose, they conduct various activities which can help your child learn in a better manner.
There are certain activity rooms constructed in the building where children go to perform different actions. Also, schools conduct various activities, including school trips, sports days, annual functions, science days, etc.
This amount is usually asked at the beginning of a session. Some schools also ask for the required amount right before conducting the activity.
The strategy differs from one school to the other. Laboratories are an integral component of a school. Every school has numerous labs, including computer, physics, chemistry, biology, etc. Students go to these labs to conduct experiments and learn in the process.
These were some of the additional fees that add up to the total fees paid by the parents. We cannot deny that all of these components are extremely important. But simultaneously, it gets heavy on the pocket of the parents who are tight on budget.
You may not be able to stop costs from rising but you can save for this cost. Save today and give your child the future they dream of!
Managing School Costs with EduFund: A Parent’s Guide
Managing school costs can be a daunting task for parents, especially with the rising fees associated with quality education. EduFund offers a range of tools and resources designed to help families navigate these financial challenges effectively. Here’s how EduFund can assist in managing school costs:
1. Comprehensive Cost Estimation
EduFund’s College Cost Calculator is an invaluable tool that allows parents to estimate the total cost of education, including tuition, accommodation, books, and other essential expenses. By inputting relevant data, parents can gain insights into current and future costs, enabling them to plan their finances more effectively.
2. Budgeting Assistance
With the rising costs of education, creating a detailed budget is crucial. EduFund provides guidance on how to develop a monthly budget that accounts for all educational expenses. This includes tuition fees, extracurricular activities, and necessary supplies, helping families prioritize their spending and savings.
3. Savings Plans Tailored for Education
EduFund offers customized savings plans that allow families to set aside funds specifically for educational expenses. By starting early and saving consistently, parents can accumulate the necessary funds to cover rising school fees without financial strain.
4. Access to Education Loans
For families needing additional financial support, EduFund provides access to education loans with competitive interest rates starting at 8.5%. These loans can help cover tuition fees and other related costs, ensuring that students have the resources they need to succeed.
5. Investment Strategies
EduFund encourages parents to consider investment options that can help grow their educational savings over time. By providing insights into mutual funds and other investment vehicles, EduFund helps families make informed decisions that align with their financial goals.
6. Financial Literacy Workshops
EduFund conducts workshops aimed at enhancing financial literacy among parents and students. These sessions equip families with the knowledge needed to manage education expenses effectively and avoid unnecessary debt.
7. Scholarship Guidance
EduFund assists families in identifying scholarship opportunities that can significantly reduce educational costs. By helping students apply for scholarships that match their qualifications, EduFund provides an additional avenue for financial support.
8. Real-Time Financial Monitoring
EduFund’s platform allows parents to track their savings progress and manage their educational expenses in real-time. This transparency enables families to adjust their financial strategies as needed, ensuring they stay on track to meet their goals
