Why education is planned differently
The date is fixed years in advance and cannot be postponed, and the cost has historically risen faster than general inflation — which is why the default assumption here is higher than for other goals.
Together these mean the money must be there, in full, on a known date. That rules out leaving the whole amount in equity right up to the admission year.
A workable approach
- Start when the child is young. The gap between starting at four and starting at ten is usually the difference between a comfortable monthly figure and an uncomfortable one.
- Keep this corpus separate, so it is not quietly spent on something else.
- Begin moving it into safer instruments about three years before the course starts.
- Insure the earning parent adequately. A plan that depends on an income should not fail because the income stops.