Factors To Consider When Investing For Children

For most families, planning for their children’s future is a top priority, and a solid financial plan is crucial to achieving this goal. A webinar organised on the occasion of Children’s Day by Aditya Birla Sun Life Mutual Fund along with Outlook Money shed light on effective strategies to manage the ever-growing costs of education.

The panel featured K.S. Rao, Head of Investor Education at Aditya Birla Sun Life AMC; Amit Trivedi, Co-founder of Osat Knowledge Pvt. Ltd; and Suresh Sadagopan, a Sebi-Registered Investment Advisor and Founder of Ladder7 Financial Advisories. The panel was moderated by Nidhi Sinha, Editor of Outlook Money. Here are some key highlights and takeaways.

Why Is Planning Early Critical?

Rao said that, explaining that early financial planning can significantly reduce the reliance on education loans. He said, “The earlier parents begin saving for their children, the less dependent they will be on loans. Even small, consistent investments through SIPs can ease the financial burden over time.”

He stressed the importance of teaching the children values and good financial habits, as these are skills that will support them throughout life.

Finding the Balance

In today’s world, parents often feel societal pressure to provide their children with the best education, even if it comes at a cost that they can’t afford, said Trivedi.

He encouraged parents to take a realistic approach, reminding them that high expenses don’t always guarantee better outcomes. “Parents must consider whether their investment in expensive institutions will actually yield significant career advantages for their children,” he said.

Trivedi also introduced the concept of viewing education through a return on investment (ROI) lens. He cautioned against excessive borrowing.

The Importance of Perspective

While the education of children is undoubtedly a critical milestone for most parents, over-investing in it can jeopardise other important financial goals, such as retirement.

Sadagopan stressed the need for a balanced approach. He also reminded parents to maintain perspective. Education is a vital part of a child’s growth, but it shouldn’t come at the expense of long-term financial stability for the entire family.

Investing in children’s education is about more than money—it’s about providing them with the tools, skills, and confidence to succeed in life. As Rao aptly concluded, “Education is not a one-day effort. It’s an ongoing process that requires thoughtful financial and emotional investment.”

For parents, this journey is a mix of careful planning, open conversations, and the ability to adapt to changing circumstances.

Disclaimer: This webinar is an investor education and awareness initiative by Aditya Birla Sun Life Mutual Fund in collaboration with Outlook Money.