Child Education Planning: estimate the future cost before you invest

How inflation, time horizon and current savings can shape a child education goal.

Education goals are easier to plan when the target year and today's estimated cost are written down first.

Inflation can materially change a future education target. A simple projection using an assumed inflation rate gives you a starting point; actual costs will vary by course, city and institution.

Once the target is estimated, compare it with existing earmarked savings and calculate the remaining gap. The investment approach should match the time horizon and risk capacity.

Review the goal periodically as income, education plans and market values change.