Every year lakhs of parents aspire to send their children to Study Abroad for higher education. USA, UK, Canada, Australia & Singapore are some of the popular overseas education destinations. Managing finances to fund your child’s overseas education is an important challenge for the parents of the child. However, a little bit of planning & management of funds on the part of the Student’s parents will make his Study Abroad Dreams come true. If you as a parent are worried, Stop worrying! This Blog post will offer tips & guidance on How to Manage Funds for Your Child’s Study Abroad Dreams. Let’s discover now!
Tips to Finance your Child Study Abroad
- Purchase a Forex card
- Make your Budget plan
- Try to reduce daily expenses
- Start saving money as early as possible
- Make a Smart Plan
The Cost of Studying Abroad
Basically, the cost of studying abroad consists of two major factors: Tuition fees & cost of living. Besides the Tuition Fees, other expenses include accommodation, transportation, food, electricity, and utilities. The overall cost of study abroad varies from 20-25 lacs to maximum 1.0-1.5 cr. To take care of all these expenses, parents have to make long-term planning, investment & budget.
How to Plan for Your Child’s Study Abroad?
- Make an Estimate of the entire cost of Higher Education- Calculate the college tuition fees to be paid, and make a note of other expenses, such as accommodation costs, food, utilities bill, and transport bills. Managing the budget will help make the transition as smooth as possible.
- Start early and make long-term financial planning- As parents, start making some personal sacrifices and plan early for your child’s international education. This will enable your child to gain the benefits of Study Abroad later on. Try to reduce non-essential expenses & check your spending history. Make a habit of saving funds at regular intervals for your child’s education. For e.g., you can fix an amount every month to save. Saving a regular amount every month from your regular income will help you to meet the long-term overseas education requirements of your child.
- Time-Period for Preparation- As soon as Study Abroad becomes an aim for you and your child, start researching for the courses you want to opt for, & the country you will choose as your study destination. Start preparing for financial aid & scholarships also as part of plan
- Get to know the Basic Requirements- If your child is aiming to Study Abroad, then one of the most important requirements will be to be self-sufficient to handle himself. In an international country, where natives communicate in local languages, language skills become critical. Hence learn and master language skills & problem-solving skills to survive in foreign land.
- Health Insurance- You have to also plan for health insurance for your kid while studying abroad. You can purchase Health Insurance directly from the school/university to cover your child. Additionally, there are numerous private companies that also sell health insurance plans to students such as HTH Travel Insurance and Compass Benefits Group.
- Take care of Inflation & Exchange Rates- Take extra pain to research your country’s past inflation rates & its currencies’ depreciation against major currencies of the world. The information gathered from the research will help you to calculate the extra amount you need to fund your Child’s overseas education journey. This extra amount needed you can add to your educational funds saving for your child’s future higher studies abroad.
How to arrange finances for your Child’s Study Abroad Dream
- Source of funds- Start by making your own budget plan and try to find out how much you can spend from your own savings. Then try to reach out to other sources of external assistance. There are a lot of avenues to fund your child’s international studies. You can also apply for different scholarships & grants offered by universities to cut down on education costs. You can also apply for education loans to Study Abroad.
- Start Preparing Early- If your child is still young and you’ve made up your mind to send him abroad for higher studies, start investing early. This will go a long way to save you from any future tensions & liabilities. You’ll not have to bear the financial burden when your Child will grow up & studies Abroad. Start as early as investing in Systematic Investment Plans, Mutual Funds, Fixed Deposits, Stocks etc.
- Review your Investments regularly- Always make a good practice to periodically review your investments to remain up to date about your current financial situation. If any of your investments are not giving returns as per your expectations, take a sound decision regarding that.
- Invests with a less risky approach- If you are on the correct path to achieve your financial goals, then always try to make your investment portfolio less risky. In this way, there will be less risk of losing your returns accumulated up to now. Whatever returns you’ve accumulated so far, try to invest in a savings account or debt mutual funds. These investment options both benefit from safety & liquidity. You can also consider another safe option: Fixed deposits.
Once you have made up your mind to send your child to Study Abroad, the next step would be to arrange for funds to finance the studies. Financing your child’s Study Abroad journey is something you have to figure out as early as possible. A proper planning on your side will not only protect your Child’s Study Abroad journey but also make it smooth.