Child Education: A dream unfulfilled! – Parents need to keep aside Rs. 3 to 8 Lakh for nursery admission

After undergoing a rigorous selection procedure, parents of tiny tots aiming for seats in nursery schools in Delhi-NCR say they are now facing the biggest hurdle ’donation fees’which ranged from Rs. 3 lakh to Rs. 8 lakh, a survey conducted by industry body ASSOCHAM Social Development Foundation (ASDF).

Affording best quality education for children has burnt hole in the pocket of parents, this year parents will keep aside an average budget of over Rs. 3 Lakhs to 8 Lakhs for single child due to the heavy fee charged by the private schools, reveals a survey conducted by industry body ASSOCHAM Social Development Foundation (ASDF).

Parents’ applying for primary schools have increased their budget from Rs 1 Lakh in 2010 to Rs 3 Lakhs in 2013 on items and activities integral to the school curriculum, such as fees, transport, books, uniforms, stationery, building fund, educational trips, tuition, extracurricular activities and the heavy amount spent on prospectus, reveals survey.

“The survey showed that parents invest an average 75% of their income in their children’s education. The cost of education is increasing every year, much ahead of inflation”,

Mr. Rawat further said that the fees structure for nursery and KGs is costlier than that of Delhi University, IIMs, IICA and IICS which really provide qualitative education.

In a survey undertaken by ASSOCHAM SDF about 2,000 parents, with a minimum salary bracket of Rs 3 to 8 lakh annually, were interviewed in Delhi-NCR in which it came to limelight that parents find difficult in meeting their ward’s education cost and planning to break their funds for admission process this year.

ASSOCHAM survey reveals that many parents have complained about schools demanding money without receipt by almost all private schools in Delhi and NCR.

The parents’ annual income, on an average, has just risen up to 30% in the past five years but on the other hand education cost has increased by over 300% in the last five years, points out the survey. Majority of parents believe it is difficult for a single parent to fund a child’s education in this current scenario.

Over 92% parents in one-member-earning families often find it impossible to pay even for one child’s education. So, the demand of dual income is very common to fulfill the education cost these days. The cost of education is increasing every year, much ahead of inflation, it added.

The survey points out that school expenses including tuition fees have also doubled during 2010 to 2013 on a single child. The school-related expenses have also increased five times in the last 5 year.

The average fees of private day schools are Rs. 60,000 to 3 Lakh per annum, which is much higher in metropolitan cities. Transport costs an average of 12,000-25,000 per child per year. Parents nearly spend 6,000 to 10,000/- per child on school uniform.

“In the absence of competition, schools often force the parents to buy uniform, text book, stationery, shoes etc from school shops only which is higher five times higher than the normal price”, added majority of the parents.

School bag and shoes cost Rs 8,000 -12,000/- per child while footwear works out as being more expensive than textbooks, adds the survey.

According to the survey, 85% of parents spend more than half of their take-home pay on their children’s education, extra coaching and extra-curricular activities, placing significant burden on their family budget.

While 85% of the parents complain they are forced to make their children quit extra-curricular activities such as dancing, music or art lessons, sports or foreign language tutoring due to cost factor and time constraint. Moreover, 92% parents believe that they cannot afford to provide education to their children if both of them are not working.
The average expenditure on single child education is nearly 75% of the total income earned by a family. The expenses further increase by 30% if there is only one earning member in the family, the survey of The Associated Chamber of Commerce and Industries of India (ASSOCHAM) reveals.

Mr. Rawat further said, “Education in private schools has drastically become expensive due to which middle class families are finding it difficult to bear the extra burden.”

With thousands of parents fighting over a few hundred seats in a limited number of good schools, the private institutions call the shots during the admission season. The current fee structure in the IITs is around Rs 50,000 per annum. Besides, students pay about Rs 20,000 annually for other purposes like accommodation, alumni and admission fees.

But when it comes to reputed nursery schools in Delhi and NCR, the figure increases significantly and quotes anywhere around or above Rs 75,000 a year, which parents have to shell out even after undergoing a rigorous evaluation process rigorous evaluation system to get their ward’s admission in good schools, school authorities defend their fee structure saying this is proportionate to the service and education they render.

While the admission fees add salt to the injuries of parents who had to under go a rigorous evaluation system to get their ward’s admission in good schools, school authorities defend their fee structure saying this is proportionate to the service and education they render.

With around four-six lakh applications competing for one lakh nursery seats and a point-system that seems to be discriminatory, majority of parents will be extremely worried as they go on the admission spree.

As per the survey, 84 per cent out of the 2000 parents are anxious that this year would again be an admission nightmare like last year. To make sure that their child gets a seat, parents are applying in more than thirty schools at a time, just to make sure they get a seat in any school.

Nearly 85% of parents said, “City schools are being very secretive about their fee structure. They don’t display the fee on their school websites, along with the information about their excellent facilities and teachers”.