Rising higher education costs drive new spending and savings trends

Rising costs in higher education are driving significant financial planning and consumer spending trends in both India and the United States.

In the United States, annual costs at many colleges, including tuition, fees, and room and board, are approaching or exceeding $100,000. This high price tag has fueled a niche service economy for “dorm couture,” where parents spend thousands on personalized, high-end dormitory decorations such as custom headboards and chandeliers. National Retail Federation projections suggest back-to-school spending will reach $103.5 billion in 2026, with a significant portion allocated to dorm and apartment furnishings.

In India, parents face unique challenges when planning for children to study abroad. The combination of high absolute costs, currency fluctuations, and education inflation requires different savings strategies compared to domestic education. For example, a two-year master’s program in the U.S. can cost upwards of ₹90 lakh, necessitating long-term systematic planning to account for the shifting cost base and timeline.