'99% Indian parents burn lakhs on school fees': This CA’s Rs 10,000 SIP trick flips that

A 10-year SIP of just ₹10,000 a month could fully fund your child’s education—and still leave you with ₹50 lakh in hand by the time they turn 22. No loans, no stress, just smart compounding.

In a post traction on X, CA Nitin Kaushik (FCA, LLB), who tweets as @Finance_Bareek, broke down a step-up SIP strategy that could replace costly education loans with long-term financial planning.

“99% parents burn lakhs on school fees without a plan,” Kaushik wrote. “What if a 10-year SIP could fund your child’s education almost free… and still leave lakhs for their dreams?”

Here’s how it works:

• Start a SIP of ₹10,000/month when your child is born
• Increase the SIP by 10% every year for 10 years
• Stop contributions after 10 years
• From age 10 to 22, withdraw ₹25,000/month for fees

Assumed CAGR: 12%

According to Kaushik’s math, you’ll invest ₹19.12 lakh over 10 years. By then, the corpus grows to ₹32.69 lakh. Over the next 12 years, you withdraw ₹36 lakh for education, and still end up with ₹51 lakh in the account.

“Compounding still works while withdrawing,” he noted, emphasizing that the remaining corpus keeps growing, allowing wealth to build even during the payout phase.

In contrast, an education loan of ₹36 lakh at 11% over 10 years would result in EMIs of around ₹50,000/month—double the SIP withdrawals, and burdened with interest.

Kaushik adds that this strategy matches income growth. “Start with ₹10K/month, and by Year 10 you’re investing ₹2.8L annually—aligned with promotions and salary hikes.”

His tips include using low-cost index funds, maintaining liquidity for emergencies, and reviewing progress yearly. “A disciplined, step-up SIP for 10 years can do more than a decade of overtime,” he concluded.