Education Savings Strategy for 2026: How to Calculate Estimates and Counter Inflation

Mother's Word Rosnia.CO.ID -The consistent increase in education costs every year has now become one of the biggest financial challenges for parents in Indonesia.

Without proper early preparation, the gap between current funding availability and real needs in the future risks creating a serious financial gap.

If not anticipated, this condition can disrupt household stability and lead to failure in fulfilling the higher education level for children.

Starting an education savings account as early as possible is no longer just an option, but an urgent need that must be prioritized.

This is because the inflation rate of education costs in the country tends to fluctuate more wildly and be higher compared to general inflation.

This phenomenon requires a more careful asset allocation strategy to ensure that the money collected does not lose value over time and due to rising education service prices.

How to Estimate Education Funding Needs

The most crucial step in preparing this plan is to perform precise calculations. Parents cannot just guess numbers without a strong data basis.

Quoting information from the pagePegadaian Friends, planning must take into account various future cost components by including the annual inflation factor as a main variable.

Here are the procedural steps in making a comprehensive education funding estimate:

• Identify Educational Level Specifically

Determine the desired school or university. Will the child study at a private elite school, a public school, or a university abroad? The difference in location and institutional status will significantly change the cost standards.

• Inflation-Based Calculation of Initial Fees and Monthly Tuition Fees

Find out the current total initial fee and monthly tuition (SPP). Then, project these figures assuming an increase in education costs of about 10%-15% each year until the child starts school.

• Entering Supporting Cost Variables

Don't just focus on academic costs. Include book costs, uniforms, extracurricular activities, transportation, and living expenses (pocket money and rent) if the child has to stay away from home.

• Determination of Savings Period

Calculate the remaining time or term available before the child enters a specific education level. This is used to determine the required monthly deposit amount in order to achieve the target fund on time.

Strategy to Secure Savings from the Impact of Inflation

After the target amount is locked in, the next challenge is to ensure that the funds grow beyond inflation. Keeping money only in conventional savings accounts risks reducing purchasing power in the future.

Quoted from the tips shared byBCA Life, there are several strategies for parents to remain calm in preparing for education funds:

• Choosing the Right Investment Instruments: Avoid relying on regular savings accounts with low interest rates. Use instruments such as mutual funds, gold, or stocks, which have historically been able to provide returns above the inflation rate.
• Discipline in Regular Saving: Consistently setting aside money every month is much more effective than saving a large amount irregularly.
• Periodic Portfolio Evaluation: Conduct a review at least once a year. The purpose is to ensure that investment growth remains aligned with the actual cost increases on the ground.
• Emergency Fund Separation: Make sure to have an emergency fund that is separate. This is important so that your education savings are not forcibly used in case of an urgent situation such as hospital costs or home repairs.
• Insurance Protection: Life insurance for the head of the family or the main breadwinner is very important. It ensures the continuation of children's education in case of unwanted risks to the parents.

The Importance of Asset Diversification and the Benefits of Gold

In addition to capital market instruments, gold remains the favorite choice of the Indonesian people as a hedge or safe-haven asset.

Quoting the pagePegadaian Friends, gold has the advantage of high liquidity and value that tends to be stable even increasing in the long term.

This characteristic makes gold very suitable for preparing school entrance costs that are medium to long-term.

Combining various financial instruments or diversifying can minimize the risk of total loss.

For example, parents can allocate funds for elementary school needs in conservative and low-risk instruments.

Meanwhile, funds for higher education with a time horizon of more than 10-15 years can be placed in more aggressive growth instruments such as stocks or stock mutual funds.

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The Power of Composite Flowers

In the world of investment, the term compounding interest or compound interest is known. This is why starting an investment from a newborn baby provides extraordinary benefits.

The longer the investment period, the greater the "snowball" effect produced by reinvesting the returns.

Financial tips for parents: Don't wait to have leftover money to save. It's better to allocate at least 10%-20% of your monthly income immediately after receiving your salary, specifically for the education budget.

With realistic and data-based planning, future financial burdens will feel lighter. Financial awareness is not only about how much money is saved, but also about how wisely we manage our assets so that they retain their value when needed later.

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