Education Costs Rise Every Year: How to Prepare the Funds with Insurance

JAKARTA, KOMPAS.com – The continuous annual increase in education costs presents a unique challenge for many families in Indonesia. Amid efforts to secure a better future for their children, parents face the reality of ever-rising school fees that do not always align with their financial capabilities. The Financial Services Authority (OJK) records that average school enrolment fees rise by 10 to 15 percent per year. Meanwhile, education cost inflation is recorded at 2.38 percent. In practice, many families still rely on savings as the primary source of funding for their children’s education. However, this approach is considered risky, especially when funding needs grow faster than savings accumulation. Not a few parents end up withdrawing emergency funds, liquidating other savings, or redirecting monthly budgets to cover education costs. Financial pressure intensifies when two critical phases occur close together, such as when a child enters university and parents approach retirement. Prudential Syariah’s Chief Customer Marketing Officer, Vivin Arbianti Gautama, stated that the rise in education costs exceeding general inflation requires families to adopt more comprehensive planning strategies. “Amid the rise in education costs exceeding general inflation, we see that Indonesian families need more than just saving. Having a disciplined, measurable planning solution that does not burden monthly cash flow is very important,” said Vivin in a written statement on Wednesday (6/5/2026). One initial step that can be taken is to separate education funds from main savings. Combining funds often leads to education allocations being used for other needs, resulting in unmet funding targets. By having a dedicated allocation, parents are deemed able to be more disciplined in managing finances and maintain focus on the long-term goal of their children’s education.