Preparing a child's education fund from an early stage is not merely about saving—it is a long-term investment for the child's future. Amidst a sluggish economy and continuously rising living costs, education expenses can become a major burden if not anticipated from the beginning.

Professional Financial Planner Rista Zwestika Reni CFP®, WMI, WPS, emphasized that there are three compelling reasons why parents should start planning their children’s education fund while they are still young.

3 Reasons Why Parents Should Plan for Their Children's Education Early

1. Education costs are steadily increasing
The cost of education tends to rise almost every year. According to Rista, this trend is mainly driven by two factors: inflation and limited government funding.

"Inflation and the government’s budget constraints are what cause school fees to keep going up. As a result, most of the education budget is allocated to schools with greater financial needs," she explained during a talk show titled Smart Ways to Manage Finances: Preparing Children for Back to School, held at IKEA Jakarta Garden City on Thursday (June 19, 2025).

Therefore, it is essential for parents to start preparing the education fund early to avoid being overwhelmed by the rising costs in the future.

2. To avoid sacrificing the quality of their child’s education
Rista shared that many cases she has handled show a direct impact between parental financial difficulties and the quality of their children's education.

"From 2020 to early 2023, I often encountered cases where parents had to pull their children out of good schools and enroll them in institutions that were two to three levels below in quality," she revealed.

This situation usually arises because financial risks were not anticipated beforehand. With careful and early financial planning, parents can ensure their children receive quality education regardless of economic fluctuations.

3. To provide the best educational opportunities
Every parent naturally wants to offer the best education possible for their children. Unfortunately, this ambition is often not supported by solid budgeting.

"Sometimes, parents aspire to provide top-tier education for their kids but never take the time to calculate how much it would actually cost," said Rista, who has over 25 years of experience in financial planning.

She reminded parents to choose schools based on their actual financial capacity. That way, the child’s education can remain optimal without causing undue financial pressure.

"My recommendation is to enroll your child in schools that align with both their needs and your financial situation, so that the quality of their education remains high," Rista concluded.