Education Costs Continue to Rise, Parents Urged to Plan School Funds Early
The consistently rising cost of education from year to year makes education financial planning a crucial aspect of family financial management. Early preparation is considered key to helping parents meet their children’s future educational needs without disrupting household financial stability.
According to the 2024 Education Supporting Statistics publication issued by Statistics Indonesia (BPS), the average cost of education at the primary school level (SD) and its equivalent reaches Rp4.56 million per academic year. This figure more than doubles at the senior high school (SMA) or vocational high school (SMK) level, reaching Rp10.19 million per academic year. The data indicates that education is a long-term need requiring sound financial planning. As children progress through higher education levels, the financial requirements families must prepare for will also increase.
PT Asuransi Jiwa IFG (IFG Life), a member of the state-owned insurance, underwriting, and investment holding company Indonesia Financial Group (IFG), believes education fund planning should be part of a family’s financial strategy so that parents are better prepared to meet various future educational needs.
Beyond increasing with education level, the amount of education costs also varies across different community groups. BPS data shows the average cost of primary education for the top 20 per cent of households by expenditure level reaches Rp8.88 million per academic year. Meanwhile, for the bottom 40 per cent of households, the average recorded education cost is Rp3.28 million per academic year. This disparity shows that every family’s financial capability is different. Nevertheless, the need to prepare for a child’s education remains a priority that must be planned from the outset.
Fabiola Noralita, Individual Business Director and Acting Corporate Business Director of IFG Life, said parents should not delay education fund planning until their children reach school age. “Every parent certainly wants to provide the best education for their children. Therefore, education fund planning should not wait until the child enters school age, but rather be prepared early as part of family financial planning,” Fabiola stated.
According to her, more thorough preparation will provide families with a greater opportunity to realise their children’s educational aspirations without sacrificing other financial needs. Additionally, families need to anticipate various risks that could potentially affect household financial conditions so that children’s education plans can proceed as expected.
The urgency of early education planning is also increasingly relevant amidst the demographic bonus Indonesia is currently enjoying. With a dominant productive-age population, more families are in the phase of building their future and preparing for various long-term needs, including children’s education.
However, public understanding of financial protection products still needs improvement. Based on the 2025 National Survey of Financial Literacy and Inclusion (SNLIK), the insurance literacy rate among Indonesians has only reached 45.45 per cent, while the inclusion rate stands at 28.50 per cent. This data indicates there is still considerable room to enhance public understanding of the importance of financial protection as part of family future planning.
As a life and health insurance company, IFG Life continues to promote financial literacy and public awareness of the importance of preparing for the family’s future. The company views education as one of the primary financial goals that needs to be planned and sustained. Therefore, IFG Life is committed to providing protection solutions that help families continue their future plans when facing unexpected risks, including safeguarding the continuity of children’s education.