Children's Education Costs Soar, Here Are Tips to Prepare

The escalating cost of securing the best education for children is no longer just a dream but a struggle against time and ever-increasing expenses, according to Vivin Arbianti Gautama, Chief Customer Marketing Officer of Prudential Syariah. Many families still rely on savings to prepare for school fees, yet the Financial Services Authority (OJK) reports that school entry fees increase by an average of 10–15 percent annually, while education inflation stands at 2.38 percent. “Amidst education cost hikes that outstrip general inflation, we see that the needs of Indonesian families go beyond just saving,” she stated recently. This means funds set aside over many years often prove insufficient when school enrolment arrives. Many parents end up forced to tap into emergency funds, cash in savings, or even use their monthly budgets to cover education expenses. Vivin added that the real challenge lies here. The question is no longer whether planning for a child’s education is necessary, but how to structure these various life stages into a single, well-planned, and sustainable step. At the same time, parents must still manage routine family needs, prepare emergency funds, and begin thinking about their own financial futures. This challenge grows as family financial needs increase across different life phases. It is not uncommon for two major family planning stages to arrive close together, where a child enters university while the parents approach retirement and rely on long-term savings previously set aside for their own future. “Without careful planning, the financial pressure in this phase becomes increasingly real. Having a planning solution that is disciplined, measurable, and does not burden monthly cash flow is crucial,” she said.