5 ways to financially prepare yourself to send your child abroad
Education is the most valuable investment. This is why millions of Indian parents aspire to send their children abroad for foreign education. Countries like the United States and the United Kingdom offer academic excellence and better infrastructure. But with the increase in tuition costs, sending your child abroad is tougher. Here are 5 ways to financially prepare yourself to send your child abroad.
Start early with long-term financial goals
The first rule of saving is to start early. Examine your spending habits and eliminate unnecessary costs. Set aside a certain amount of funds on a monthly basis for your child’s education.
Saving and making investments early in life increases your chances of reducing your ability to procure loans and minimizing the effect on future cash flows.
1. Estimate present and future cost
When calculating and budgeting, it is recommended to anticipate the rising prices. The more funds you save now, you are in a better the position to use them for your future needs.
This gloomy outlook will ultimately allow you to improve your probability of establishing a prospective foundation that outweighs actual expenditures.
2. Consider inflation and currency exchange
While planning to send children overseas for higher studies, it is required to consider the country’s inflation rate as well as the currency’s potential depreciation fluctuations.
Investigations and knowledge of historical inflation and depreciation trends will help calculate the additional amount required to manage education overseas.
For instance, the falling rupee has directly affected the budgets of hundreds of Indians studying in the USA today and increased their cost of living and parents who wish to send their children in the future.
3. Find the best investment opportunities
Investigate medium- and long-term investment possibilities in which you may begin investing as soon as feasible. Determine your risk tolerance and investing capacity, and then invest accordingly. A well-diversified technique with an optimistic approach will allow you to develop a progressive investing strategy.
4. Speak with an investment advisor
Don’t shy away from consulting with an expert, if you are concerned and underequipped with your framework agreement. Investment advisers and foreign education professionals can assist you in analyzing your possibilities and establishing a more comprehensive and attainable approach.
What makes foreign education more expensive?
Without a doubt, the expense of studying overseas is more than the cost of education in India. The amount varies depending on the university, country, course, and length of the program. As a result, it is critical to choose universities that are within your financial means.
The currency exchange rate and higher cost of living make foreign education expensive. Let’s look at more factors contributing to this cost!
1. Tuition Fees
Tuition fees are the largest mandatory expense. Depending on the course and location of study, it can vary. Master’s degrees are more expensive per year than bachelor’s programs.
Courses like Criminal Justice, Philosophy, English, and Mathematics are considered the most affordable subjects in terms of tuition fees. Courses like Health Sciences, Physical sciences, Business & Nursing are considered the most expensive subjects in terms of tuition fees.
Tuition fees may be standardized or depend on the selected course. The report of probable tuition fees across the world’s favorite destinations is as follows.
2. Academic Supplies
Another expense to prepare for is Academic resources, which range from textbooks and stationery items to computers and art tools. The report on average educational supplies costs worldwide are as follows:
3. Rent and Utilities
Accommodation is usually the second-largest expenditure for overseas students after tuition. Students can rent accommodation in small towns closer to their universities to save on costs. The report on monthly rent cost country-wise is as follows:
4. Shopping and groceries
To cut down on costs, students can buy products that are at maximum discounts. Rather than purchasing big brands, students can buy cheaper brands that are more valuable. Students can plan to cook in batches and freeze the cooked meal for consumption. The report on country-wise monthly grocery costs is as follows:
There are various other costs associated with being educated abroad. These costs include visa costs, insurance, and university commuting expenses. To manage all these examples, one must be financially prepared before sending your child for education abroad.
Higher education abroad is an enriching journey with several advantages; it can be affordable if you start saving consistently. These 5 ways can help you financially prepare yourself to send your child abroad and help them achieve their dreams stress-free!