The generation born in the decade 1955 to 1965 is now grappling with children’s expenses, parental expenses and own retirement seeding fund pressures.

What exactly should they do?

They have a great argument: “My parents paid for all my education, and they did not hesitate” so I will too. Great. Our generation did not make too much of a demand on our parents for education. I know a friend who qualified as a Chemical Engineer and took up a job.  Along with the job he did his MBA in finance – and funded the full time course with his own earnings.

My father spent money on my Bcom and CA and it did not cost him the heavens to fund it. Our parents funded our education out of their current income, not out of doing a SIP to meet the education costs.

Times have changed, our attitude too has to change.

The earlier gen lived a simpler life. My father was very well paid but as a family we never splurged. We used to eat out a few times a year (the others in that gen did not do even that). Many of them had defined benefit pensions. Medical costs were not so high and longevity was not such a big issue as it is going to be for our generation.

And boy! have medical costs changed! Our parents may not have set up a medical fund (and thank God many of them did not need a King’s war chest to pay for their illnesses.

Education costs have just gone through the roof. Government colleges too have become expensive. IIMA today charges Rs. 25L for a one year MBA program. ISB Hyderabad is not very far behind.

The lesser known colleges are not far behind. Forget the MBA degree, if your kid were to start in an International school (even in Godforsaken suburbs of our metros IG schools costing Rs. 100,000 for a Kindergarten school are available. (Rs. 2L if you see what a reader has said yesterday).

You have already set the expectation of the kid. He knows you plan to spend Rs. 9 lakhs per annum in class 8, 9 and 10. Class 11 and class 12 cost about Rs. 30 lakhs in total. Your kid has just joined school? Double the money required. Simple.

Now this kid will do his graduation in the US – he did not do IG to do Bcom in Podar college, right? So be ready for say Rs. 4 crores for education in the USA. What if he wants to spend Rs. 84 lakhs on a hotel management degree? Will you be willing to fund him?

Soch lo……………….