Category Archives: Education

College teaches you a great many lessons and gives a guide to budgeting. Not all of those lessons, as it happens, are learned in the classroom. As a young college student, budgeting and good financial planning are lessons you will learn to appreciate sooner rather than later. This is especially true if you are planning on moving abroad for your studies.  The expenses of a global education may have you worried and asking “Is studying abroad worth it?” Well, there is no doubt that going to study abroad has a great many benefits, both for your career as well as your personal growth and development. In fact, learning how to live on a tight budget can be a life lesson on its own. In this blog post, we try to understand how to get started in creating your first personal budget.  Image by Andrea Piacquadio on Pexels Basics of financial planning When you are preparing for your college applications, it is likely that you have an education plan in place. This ensures that you are more organized with your applications and aren’t surprised or thrown into a tizzy due to unexpected circumstances. In the same way, to ensure that you are organized with your money and to avoid being beset by financial emergencies, you need a financial plan. What is Financial planning? Financial planning is basically a method to plan and manage your income, expenses, investments, and other finances to ensure that you can achieve your life goals. A good financial plan also anticipates and makes room for emergencies that may otherwise drain your savings or cause you to incur debt.  The first step in creating a financial plan? The first step in creating a good financial plan is the same as the first step in creating a good education plan - identify your goals. You need to figure out what your financial goals are. They can be as simple as being able to save a certain amount at the end of the year. Be realistic with your goals. Keep in mind that you are still young and do not have too many responsibilities right now. Therefore, you can treat your college life as a growing and earning period. You don't have to put too much pressure on yourself. image by Karolina Gabrowska on Pexels Understanding & tracking your finances Once you have your financial goals in place, you can start sketching out your plans. Understand your finances. Figure out how much money is coming in each month, (through education loans, scholarships, part-time jobs, or your parents) and how much of it you are spending. Figure out which expenses are reasonable or non-negotiable and which ones you can cut down. You should also maintain a personal balance sheet to record how much you have, how much you spend, and how much you owe. Collect all bills, invoices, and bank statements to accurately record all your transactions. This will enable you to understand and track where your money comes from and where it goes. How to create your first budget? Once you have a financial plan in place, creating a budget will be easy. A budget is a summary of estimated income, and discretionary & non-discretionary expenses. Budgets help you figure out where your money is coming from and where it should be going. This enables you to spend and save money more wisely. Budgets are especially important when you study abroad and are away from family support during emergencies. If you have done your financial planning and tracking, your personal balance sheet will be your first step to creating your first monthly budget. Next, follow these simple steps - Calculate your monthly income based on this balance sheet. Your income will include all money that you earn through part-time jobs and scholarships as well as any allowances you get from your parents or through an education loan. Make a list of your monthly expenses. This list should include all your fixed as well as variable expenses including tuition, rent, utility bills, food, transport, entertainment, etc. Next, separate the non-discretionary expenses like rent and utility bills from discretionary expenses like entertainment.  Set aside money for non-discretionary expenses as a priority. This is money you are not allowed to touch for anything other than its designated purpose.  Set aside money for savings and emergency funds. You don’t have to save a huge amount but do try to keep aside at least some money for this every month.  Make any adjustments that may be required. Cut expenses where possible and adjust savings where no other options are left. And voila! Just like that, you have your first budget! Good monetary habits Good monetary habits teach you financial responsibility and maturity. When you study abroad, you do not always have your family to rely on during emergencies. By practicing these, you ensure that you do not end up in sudden financial emergencies that cause you to incur debt.  Image by Maithree Rimthong on Pexels Financial planning and budgeting are some good monetary habits. Another important habit is avoiding unnecessary expenses. Avoid buying expensive clothes or gadgets that you don’t need. Avail of student discounts wherever possible. Use the library. Use public transport. Save money wherever you can.  Pay off your debts. Try not to buy anything on credit or borrow money unnecessarily from your friends. Only buy what you can reasonably afford. S Saving money may involve sacrifices. You may have to cancel a trip with your friends or miss out on going to an expensive restaurant. Keep in mind there will always be time for those things. By planning for the long term instead of focusing on short-term pleasures, you are making sure that you enter your working life on solid financial ground.  Pay your bills early and on time. Not being prompt with your payments causes you to accumulate late fees which can easily drain your resources and unbalance your budget.  Another important monetary habit to build when you study abroad is to always have an emergency fund. This fund can help you pay sudden expenses, like if you lose your phone or if your laptop needs repair.  Image by Liza Summers on Pexels FAQs What is financial planning? Financial planning is basically a method to plan and manage your income, expenses, investment, and other finances to ensure that you can achieve your life goals. A good financial plan also anticipates and makes room for emergencies that may otherwise drain your savings or cause you to incur debt. What is the 50-30-20 rule? The 50-30-20 rule states that 50% of your income should go toward needs, 30% toward wants, and 20% toward savings. How should a student plan a budget? To create a budget, first understand what your monthly income/pocket money is, and figure out your daily and monthly spending like rent, food, and transport. Compartmentalize your spending into necessary spending and miscellaneous spending. Once you have all the information, figure out where you are spending excessively and try to save the money to create an emergency fund for yourself. Conclusion Financial planning is the first step towards financial responsibility and eventual financial independence. Your parents were able to send you to your dream college because they were fiscally responsible, saved money, and invested in child investment schemes to ensure the best future for you. The best way you can pay them back is by learning to be financially responsible yourself.  Your attitude matters. If you are not resolute about sticking to your budget, your financial planning will be futile. No financial goal is as difficult as it seems once you have your personal balance sheets and budgets in place. Welcome to adulthood!

By Eela Dubey, Co-Founder, Edufund India, and Namita Mehta, President, The Red Pen Most students pick their colleges based on rankings, which isn’t always the right strategy. Instead, they need to find the college that is the "best fit" for them. In India and globally, there are a staggering number of higher education institutions that offer world-class education. According to the All India Survey on Higher Education 2018-19, there are about 993 universities in the country, out of which 127 are deemed an Institute of National Importance. In the US, this number is significantly higher, with about 4,000 degree-granting postsecondary institutions, with US News only focusing on 1,400 for their ranking table and QS only including 160 in their World University Rankings list. The UK, on the other hand, has approximately 315 degree-granting universities and colleges listed on UCAS. This means you have choices. Many, many choices! Despite this, students opt to apply to only a handful of highly selective colleges. Since they are highly ranked on popular university lists, they are perceived as the “best”. The truth is that prospective students are fueling their hyper-selectivity. As more and more students apply to the same group of colleges year on year, they make the admit rate for these institutions smaller, leading to them becoming even more selective. The recent Netflix documentary, Operation Varsity Blues: The College Admissions Scandal which primarily focused on the recent college admissions scandal, also touched on how certain colleges are still attracting the majority of applicants. For example, over the last eight years, Harvard University has seen a steady increase in the number of applicants. From 34,295 applicants for the class of 2018 to approximately 57,000 for the class of 2025, the college has seen a 60 percent increase! And despite the pandemic, The New York Times reported that “Waiving standardized test requirements during the pandemic brought more hopefuls to the Ivy League and large state schools, while less-selective colleges face an alarming drop.” The question students need to ask is, “Which college is going to give me the education I need to reach my goal?” They need to understand how to choose the “best fit” college rather than the “best” college (which has been touted by rank tables and is based on common perception). There is no easy way of finding the right higher education institution for yourself. You need to research to understand each college’s ethos, and its USPs and see how its courses and offerings fit into your future goals. Learning about several colleges is time-consuming and hard work. Rank tables are often the go-to resource when families and students begin the college selection process. It does make sense on some level; “My child wants to study engineering and he/she has been academically successful in physics and mathematics. Let me go and check the top 10 colleges for engineering in the world.” No doubt this is a great starting point, but most often, this is where the research ends and a “dream, target, safety” list is quickly drawn up from the “top 50” options. Also, you need to understand what metrics each list is using. Universities are awarded ranks based on criteria, such as the amount of funding the faculty has secured, which may not have any impact on undergraduate teaching or a student’s undergraduate experience. The Times Higher Education World University Rankings for example, “judge research-intensive universities across all their core missions: teaching, research, knowledge transfer and international outlook.” The research area accounts for 30 percent and includes reputation survey (18 percent), research income, and research productivity (both at 6 percent). Conversely, for US News, faculty resources account for only 20 percent, which is broken down into five parameters–class size (8 percent), faculty salary (7 percent), faculty with the highest degree in their fields (3 percent), student-faculty ratio and proportion of faculty who are full time (both at 1 percent). This is why a parent and student’s research should not end here. They should deep-dive into the size, location, syllabus, job opportunities, and more before they come up with a list. “Brand value” is another aspect to which students and parents attach a lot of importance. The brand value of a college varies from region to region and is created by community opinion on the reputation of a university. In my experience, I have seen that at times, a college’s brand value is directly proportional to the number of years it has been marketing in that particular region. The more consistently the college has marketed to an audience, the more likely students will apply, enroll, graduate, and then come back and tell their peers about their experiences. When there are sufficient alumni from that college in your immediate network (and they are successful in some capacity), the brand value of that college automatically goes up and without even realizing it, prospective students will have that college on their list. The University of Warwick in the UK is a perfect case study for this. It was one of the first British universities in the UK to accept Indian local curricula such as the HSC and ISC for admission. As they were among the first, many students flocked to the university. As a result, it has a strong brand value in India. It is important to note that your “best fit” university might not be the same for you and your best friend, even if you both are interested in the same major. For example, you might benefit from a college that has substantial experiential opportunities such as the co-op opportunities at The University of Waterloo, where you have the option of working in the field. Your friend, however, might prefer significantly more traditional classes, that may not include any working exposure as a part of the curriculum. Understanding which learning environment you will thrive in is crucial! With the Covid-19 pandemic, world-class education can essentially become available to everyone who wants it. Even after the pandemic, you can access professors doing cutting-edge research on a topic of your choice, learn from them, and gain the skills you need to succeed. As the world becomes more connected and the next generation of learners becomes clear about their strengths and goals, choosing a college or learning program that will optimize their growth and potential will be critical. In the next article in this two-part series, we will talk about what components you need to look out for when you are crafting your college list. You can bet that it goes beyond rank tables and popular opinion

Millions of Indians travel to study abroad but only a few have impacted the world order in an irrevocable way. Famous Indians who excelled after studying abroad have not only contributed to the pride of our nation but also changed the world order. If you look around, you won’t be surprised to find an Indian at the helm of affairs – in nearly every industry or field. Without a doubt, these Indians have earned their success by persevering and putting in the efforts to excel in their academics too. Let’s be clear – a degree doesn’t define you or guarantee success. But a good education is an important ingredient of success. Looking beyond academics, a global education teaches you much more. For an Indian student, the benefits of studying abroad are multi-fold. What’s one common factor amongst some Indians who rule the world? An excellent global education. Let us look at four powerful Indian personalities who went abroad for their higher studies. Famous Indians who excelled globally 1. Indira Nooyi Chennai-born Indira Nooyi went on to conquer the world as the former CEO of PepsiCo. She received her undergraduate degree from the Madras Christian College and her PGP Diploma from the Indian Institute of Management, Calcutta (IIM-C). Indira took a leap of faith and applied to the prestigious Yale School of Management and her parents never expected that she would bag a huge scholarship! The Ironwoman had her fair share of struggles as her mother said - “No single woman is going to go to the United States.” In fact, there was a family meeting organized to decide if Indira Nooyi could pursue her foreign education without being married. With the support of her father and the financial aid offered by Yale, Indira’s dream became a reality. Moral of the story? No matter how big the tuition fees seem, taking an education loan is not the only way to fund your higher studies. Many foreign Universities grant scholarships to meritorious students. 2. Raghuram Rajan Meet the game-changer. Raghuram Rajan was the only RBI Governor who enjoyed the reputation of a celebrity! He was nicknamed ‘Rockstar Rajan’. All over the world, Dr. Rajan has been lauded for his economic analysis and his no-nonsense attitude in politics. He has a wealth of knowledge and that can be credited to the world-class education he received. He went to MIT for his Ph.D. and among the many accomplishments to his name, Dr. Rajan served as the Chief Economist at the IMF. In his capacity, Dr. Raghuram Rajan promotes quality education as a global B-school Professor at the University of Chicago Booth School of Business. 3. Sara Ali Khan Beauty with brains. Sara Ali Khan has won hearts as a Bollywood actress. But there is more to her background than most people know. She holds a degree from the world-renowned Columbia University in New York. In an interview, Sara Ali Khan said: “I have an education, even though I am a heroine... so many people are baffled at that and I am so proud of that.” When you live miles away from home, you have the chance to be fiercely independent. A foreign education can shape your personality and this star is an example of it. 4. Sundar Pichai Chennai-born Sundar Pichai leads by example. Currently, Sundar Pichai is the face of Google. He comes from a lower middle-class family but that did not stop this Indian student from going to Stanford University, for his Master's. Sundar Pichai also holds an MBA from the University of Pennsylvania. Sundar Pichai inspired students across the world as he shared, “My father spent the equivalent of a year's salary on my plane ticket to the US so I could attend Stanford. It was my first time ever on a plane.” It wouldn’t have been possible for Sundar Pichai, or anyone for that matter, to touch such great heights without relentless hard work, gaining knowledge, and honing one’s skills. A wise man once said, “Life is like a puzzle. Only if you fit the pieces into the right places, you will see the beauty of it.” Education is that piece of the puzzle that one should not miss. Famous Indians who studied abroad 1. Mahatma Gandhi We all know about him and his achievements. He’s known as ‘The father of the nation’. He went to the UK for studying law at The University College in London.  He returned to India later to work as a barrister.  2. Dr. Manmohan Singh He was India’s 13th prime minister of independent India. He has done his Bachelor’s in economics with honors from The University of Cambridge. Later he completed his D.Phil in economics from the University of Oxford.  3. Shashi Tharoor He is a politician and former international diplomat. He is also famous for his extraordinary English vocabulary skills. He has completed his MA in international relations from Tufts University in the USA. He also completed MA in law and Diplomacy and a Ph.D. in international relations and affairs from the same institution.   4. Kiran Desai She is an author. She has completed her two master’s degrees in fine arts, one from Hollins University and another one from Columbia University. She also studied creative writing at Bennington College.  5. Ratan Tata He’s India’s leading industry stalwart. He has studied at Cornell University and Harvard University. He studied architecture and advanced management programs at these universities respectively.  FAQs Where do most Indians go for higher studies?  Countries like Canada, Australia, and Germany.  Which country is the safest for girls to live in?  Norway, Slovenia, Switzerland, etc.   Which is the safest country for Indian students?  New Zealand, Denmark, Finland, etc.