Want your child to go to the best possible college in India or abroad? Plan way ahead of time. Being prepared beforehand is the secret ingredient to being a successful parent when it comes to backing up your ward’s academic career.
When you build an education fund it is important not only to save up but also to invest.
Here are some pro tips on how to send your child to the best possible college.
1. Planning ahead
The significance of planning ahead can not be stressed enough. There are multiple reasons why you should start having forethoughts about your family’s future.
Firstly, an ideal way of demystifying a huge process is to break it down into short-term goals.
Secondly, it can resolve all the stress that may come your way when you are faced with the biggest monetary decisions of your life.
One such decision is regarding the college your child will eventually attend. When you are ready with your investment money and savings directed to your kid’s education, you can effortlessly offer financial backing in whatever dream college they aim for.
The pandemic has not been entirely successful in distorting the trend of pursuing a global education. Make sure to start investing early so that you can keep many options open for your kid.
2. Choosing investment schemes
There are too many options to choose from when it comes to investment schemes. This is another reason why you should begin as soon as possible.
This way you will have more time in listing out the most suitable choices and deciding how you are going to divide your money between savings and investments.
You can go for mutual funds instead of investing directly in stocks. Investing in mutual funds is a hassle-free option, unlike direct investments as you will not be required to have in-depth knowledge of market trends.
3. Considering the possibility of a global education
While it is not possible to know for certain the stream of education your child will opt for in the future, it is advisable to remain prepared.
It can be useful to remember that the earlier you invest, the more wealth you generate. This principle works for every financial goal you set and it is particularly beneficial if there is a possibility of pursuing global education. Another concept you need to be familiar with in this situation is education inflation.
Education inflation is a result of the costs of education rising faster than the average income, and this rate of inflation is higher than the rate of general inflation in most countries. The only way to beat education inflation? Start investing early.
FAQs
What is important when choosing a college?
The most important criteria for choosing a college for your child are the course and their reputation in that field. For example, if your child wants to study business, they should aim for universities like Harvard, Columbia, University of Pennsylvania, and MIT.
Other factors to consider are rank, ROI of the university, acceptance rate, qualifications, and eligibility criteria as well as the fees and cost of pursuing the course.
It’s important to look at scholarships, application waivers, and the placement opportunities offered by the college.
How do I choose the right college for my child?
The right way to choose a college for your child is to plan ahead. Find out which course your child wants to pursue, and check out the best colleges and the best country to pursue that program.
The next step is to figure out the future cost of college for the program. You can use the college cost calculator to determine the cost of tuition fees and living expenses, adjusted to inflation and price increase.
How to plan for college?
The most important aspect of planning for college includes cost and tuition fees. There are multiple costs involved in sending your child off to college such as tuition fees, accommodation, travel, books, stationary, lab expenses, and miscellaneous expenses. Tuition fees and accommodation are the two biggest expenses that parents need to bear, thus, starting an education fund after determining the costs is the best way to plan for college.
Conclusion
The above-mentioned points prove why simply looking up dream colleges for your kid is not enough. To be practical, financial backing is one of the most important factors in this matter.
Plan ahead. Diversify your investments. Provide your child with the future that they deserve.
