Dumb Decisions? Why Rich Indian Parents Pay Too Much for School

Are Rich Indian Parents Making a Mistake by Paying Huge School Fees?

In India, expensive private schools are charging Rs 12 to 20 lakh every year—about as much as some top foreign colleges. Most people in India earn a lot less than this, but rich parents still pay these high fees, often without thinking twice. Does it make sense? Or are wealthy parents making a big mistake?

Let’s be honest—if parents think just paying Rs 20 lakh a year for school will guarantee their child’s success, they might not be thinking clearly. The math doesn’t work: if the average Indian earns Rs 3-4 lakh a year, even the richest people are spending a lot of their money on school. For the same price, you could pay for a year at a good college in the US or start a business. Instead, the money goes toward things like swimming pools and high-tech gadgets, which mostly show off, but don’t always lead to better learning.

Many Indian parents believe the right school will secure their child’s future, but with school fees rising much faster than incomes, this belief seems shaky. Are wealthy parents making a bad financial choice by focusing on fancy school names? They might not be “dumb,” but they could be misled by a system where appearances matter more than real education. Parents feel pressure from others to get their child into a “top” school, fearing their child will fall behind—but this often leads to stress, high costs, and not necessarily better results.

Are the schools really worth it? They say they offer a “world-class education,” but reports suggest these schools don’t always give good value for the money. Many hire expensive foreign teachers and use international courses, increasing costs. Meanwhile, tests like PISA show that even students from top Indian schools often don’t do as well as kids abroad in solving real problems. If the results aren’t great, why do parents keep paying? Maybe they think expensive means better, or maybe schools market themselves cleverly.

Some say that rich parents aren’t foolish—they’re just making a smart investment. Expensive schools can offer connections, networks, and status. If you’re super rich, Rs 20 lakh isn’t a lot. But for upper-middle-class families, paying so much can be a real stretch—they may even borrow money just to keep up. The hope is that a fancy school will open doors, but today, what really matters is your skills, not just a school’s name.

The bigger problem is the missed opportunity. That kind of money could pay for studying abroad, learning practical skills, or funding a child’s business idea. Instead, it is spent on school names and appearances. Parents who think this is the only way to succeed might be missing other good options like online courses, hands-on programs, or more affordable schools that work just as well.

So, why do rich parents keep paying? Partly, it’s fear—they don’t want their child to miss out. Partly, schools take advantage of this fear to raise fees. And partly, Indian society loves status and education. But with school fees rising and little proof that more money means better results, it’s time to ask if this makes sense. Are rich parents dumb? Maybe not, but their choices might look foolish if they don’t rethink what true education means. The biggest loss isn’t just money—it’s losing the chance to invest in things that actually help kids grow, adapt, and succeed in real life.