How to Start Saving for Your Child's Education Early: Estimating Costs, School Fee Inflation, and Regular Saving

Why start now

Many parents think about fees only at enrolment and end up borrowing. Time is the biggest advantage: Rp300,000 a month over 15 years is far easier than the same total in 3 years.

Map your child's school stages

Note how many years until each stage. Each has a large one-off entry cost and monthly running costs; the education fund mainly targets entry costs.

• Entry: enrolment fee, uniforms, first-year books.
• Running: tuition, meals, transport, tutoring.
• University: semester fees and living costs if studying away.

Estimating future costs

Find today's fees, then apply an increase assumption; many planners use around 10 to 15 percent a year for Indonesian education. Example: Rp15 million today becomes about Rp22 million in four years at 10 percent.

Monthly saving needed

Divide the target by the months available: Rp22 million over 48 months is about Rp460,000 a month without growth. Start with the nearest stage and add later stages as income grows.

Where to keep the money

Shorter horizons need safer, more liquid options:

• Under 3 years: separate savings or time deposits.
• 3 to 5 years: deposits, money market or fixed-income funds.
• Over 5 years: some growth assets like balanced funds or equities, according to risk profile.
• Gold as a complement, though it can fall short term.

Separate and automate

Use a dedicated, clearly named account and schedule automatic transfers on payday.

Track progress with Kucing Atur Duit

Create a "Education Savings" category in Kucing Atur Duit and log each deposit. Monthly charts show consistency and reveal categories to trim. Review the plan yearly.

Other funding routes

Public schools, merit and regional scholarships, and aid programmes reduce the burden. Do not sacrifice your emergency fund or retirement savings for education.