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Guide to calculating education costs for parents

Guide to calculating education costs for parents

Parents want the best for their children, especially a good education. The rising inflation rate makes it difficult for parents to determine the amount they need to save for their child’s education. Understanding the actual education costs with the help of a college cost calculator is important so that parents can become aware of the potential expenses. It surely becomes easy to plan, start early investments and build a future education corpus. Here’s a guide to calculating education costs for parents! This blog will help parents to get an estimate of future expenses and plan accordingly.  What is an education cost calculator? An education cost calculator is a tool that helps the user to know about future education expenses effectively. It is easy to use and gives the best estimates so that parents can make necessary changes in their plans to suit their requirements.  The education calculator considers future value, inflation, number of years a person has to save and then calculates the amount. The objective of using an education calculator is to make the process easy and smooth. Once the calculator gives out the estimated amount, parents can take the help of financial experts to create a roadmap for achieving financial goals.  Steps to calculate education costs  Education inflation is at an all-time high, and it has led to a rapid rise in education costs. Parents need to factor in several metrics to get the nearest estimate of potential costs.  1. Calculate the current cost Determine the cost of education based on current market value. Suppose you want to send your child to the UK, then calculate the current amount you need to send your child abroad.  If you want to send your child to a reputed college in your home country, then calculate the total cost needed for that degree course in terms of the current fee structure and associated costs. It is now easy to visit the sites of reputed universities and know about their fee structure and associated costs to get a general idea of the amount required for studying a specific course.  Parents can take the help of education counselors like the ones at Edufund to calculate the current amount needed for higher studies.  2. Determine the number of years Parents wanting to know about the education costs down the line need to determine how many years they have to save to create an education fund.  Is your child still young, or will they be ready in a few years to join the high school? Suppose the child is now 6 years old and they will need the money for higher education when they are 17 years old. The parents then have a maximum of 17 – 6 = 11 years in hand.  How many years approximately a parent has is important as the number of years affects the amount you can build. If a parent has a smaller number of years, then he needs to save a higher amount which might prove difficult for a middle-class family.  3. Consider the rate of inflation The amount you have calculated based on the current scenario will not be feasible down the line. Suppose your child enters college after ten years then the amount needed at that time will not be the same. You can consider the overall inflation rate or use available breakdowns.  It is vital to factor in the inflation rate for determining the costs that will go up in the future for correct estimates.  4. Consider the expected investment return Be realistic while determining the expected investment returns. Remember, when you have a clearer picture, it becomes easy to take the necessary steps that will take you closer to your desired goals.   5. Consider the education calculator Parents should consider an education calculator to give them the nearest evaluation of the amount parents should save to meet future education costs. The use of an education calculator will ultimately prove beneficial in making effective plans for the future. Once the parents have all the necessary information, then simply key in the details as per the instructions. The education calculator is an important guide to calculating education costs for parents as it will provide the probable future education cost and the monthly savings that need to be undertaken to build that amount.  Edufund’s college cost calculator is a comprehensive education calculator that can calculate the potential education expenses and give the nearest amount needed to meet your child’s education costs. It will also provide the parents with an estimate of the monthly savings that need to be undertaken to achieve goals. Conclusion The guide to calculating education costs for parents gives easy access to the required know-how and helps in making informed decisions. An education calculator like the one at Edufund helps to meet the educational needs of a child successfully. It is a blessing in disguise because besides providing estimates and extensive information, it helps to save the cost estimates and alter them to suit individual needs. Consult an expert advisor to get the right plan  TALK TO AN EXPERT
The growing costs of online courses for school kids.

The growing costs of online courses for school kids.

As per-student.org, “Blockchain Technology is the most demanding online course for students.” Furthermore, Business Insider Intelligence declares its exponential growth in the healthcare industry at a CAGR of 70.56% in the upcoming years. Online courses for school kids are fast growing in the new normal world, and most parents are curious about the expenses associated with online learning.  Let’s explore why. Growing costs of online courses for school kids Some online courses for school-aged children are a more affordable option since they provide a greater education at a far lower cost. It is important to stress that the average cost of online courses for school kids is still a sizable investment. Many parents started their search for a course under the impression that online education would be quite reasonable.  Online courses are gaining importance Online learning emerged as a safe and feasible option during the pandemic. Before the pandemic, the worldwide eLearning market was seeing rapid yearly growth. The eLearning market is predicted to expand at a compound annual growth rate of 9.1% from 2018 to 2026, reaching $336.98 billion by 2026.  A wide range of large-scale open online courses has emerged in response to the new employment channels and career possibilities that have already replaced traditional careers. Additional read: Does an education loan cover living expenses? Popular online courses for kids in 2022 Computer online courses related to -  coding applications data science social and digital media management entrepreneurship and management psychology graphic designing visual effects and film-making foreign languages are among the courses available Costs of online courses The majority of the online courses are paid courses. When overseas universities and institutes offer these courses, they can easily cost a few thousand. Even a 10-day program may assist students in improving overall resumes and gaining an advantage in further education in India and overseas.  Online courses for school students cost up- ₹35,000-₹1 Lakh, depending on the popularity and course duration. The reason is the huge competition among peers. Parents aim to encourage discipline and keep children engaged in nurturing skills with online courses. These courses help children remain ahead in the learning curve. The whole advancement and competition are affecting the financial bottom line. As Statista puts it, “the average monthly income of a middle-class Indian is ₹15000-₹ 20,000.” Given the statistics, there is hardly any flexibility for online course fees. The parents are stuck between managing dreams and attending to necessities. Indian education industry future valuation The Indian online education industry was valued at ₹247 crores in 2016 and is anticipated to reach ₹159 hundred crores by 2021. Simultaneously, the proportion of paid online education users is expected to reach ₹77 Crores by 2021. Because these calculations do not account for the COVID-19 pandemic, it is very feasible that the estimated estimations may fall short of reality as even more learning is brought online Trends in Online Education The drive for skill enhancement and skills training has increased the demand for online certification courses. As per weforum.org.“ The number of online learning users touched 747 crores in 2021”. This is bound to increase in the upcoming years. Almost 70% of the students have enrolled in online education to acquire a new skill or enhance their means of employment. Students gain skills without disrupting their study schedule. Top trends in Online Education 2022Does an education loan cover living expenses? Gamification education Reality Extension Honing communication and management skills AI-powered teaching lessons Bite-sized lessons for easy comprehension The personalized learning experience with analytics Invest, plan expenses, and hit short-term goals with Edufund Parents can categorize their short-term objectives depending on their duration and priority. Goals such as an emergency fund, school fees, and debt payments are critical. The cost of education in India will increase amid slow financial growth. Parents should be more focused when selecting an investment product for their short-term goals.  Parents can select investing strategies that last little less than a year and meet their short-term goals easily. They can choose the relevant SIP fund as per their income or business revenue. The platform highlights some important child education goals that guardians can save for. Choose and decide per month contribution and years until you wish to save. Once done, the platform reveals the total amount you could save given the expected inflation. You can reduce or increase investment accordingly and track the same.  Parents must build a good structure, plan, and set up when deciding on a short-term investment. Online courses help develop overall child personality. Planning once the child turns 10 is preferable. It helps budget early and invests according to short and long-term goals.  Consult an expert advisor to get the right plan TALK TO AN EXPERT
Which course is better - MBA or PGDM?

Which course is better - MBA or PGDM?

Your children have completed their bachelor's and are now thinking of pursuing a management course. MBA or PGDM? Is that the question they've been looking for an answer to? Then let us help you figure out the best option for your child. Difference between MBA and PGDM Every student has certain preferences with respect to the duration they want to invest in that particular course, location, future prospects, etc. Here are some characteristics of both MBA and PGDM which will help you understand how they're both different. By going through these differences, you can help your child choose the option that works best for them. Categories PGDMMBADuration 1 year2 yearsQualification Diploma CourseDegree CourseRequired Entrance ExamsATMA, SNAP, CAT, XAT, NMATMAT, CAT, XAT, MAT, GMATCourse Fees (Range)INR 5 - INR 24 LakhsINR 2 - 35 LakhsSyllabus Your child will get exposure to a more hands-on approach to workplace situations. The curricula at autonomous institutes frequently get updated to keep up with the changing business environment.Compared to PGDM, MBA is more theoretical. It also depends on the university your child is applying to. Top Job RolesProject Manager, Consultant, Data Scientist, Auditor, Tax Specialist, etc.HR Manager, Business Analyst, Marketing Manager, Finance Advisor, Investment Banker, etcInitial Salary OfferedUp to INR 30 LPA or moreUp to INR 60 LPA or more Additional read: Cost of school education in India? MBA Vs PGDM - Which is More Expensive? Although it varies from university to university, if we talk about the affordability of both courses, MBA is usually more economical than PGDM.  While your child can get an MBA for about 2 lakhs or a little over, a PGDM usually begins at 5 lakhs.  In either case, you can find out the exact cost of your child’s education through our College Cost Calculator. Once you find out the cost, you can plan your savings for their education accordingly. Additional read: How education inflation can hurt your child's future? Studying MBA in the USA or PGDM in Canada? Thinking of a study abroad plan for your child? Maybe an MBA from the US or a PGDM course from Canada? Well then here's what you need to know to help them decide. Pros of getting an MBA in the USA Increased possibility for lifelong income.  Increased likelihood of employment and employability.  Professionally connect with the top talent in the field.  Become more knowledgeable and broaden your horizons.  Develop strategic leadership abilities for large corporations.  Expenses: For premier colleges, Indian students' MBA tuition in the USA can range from 50,000 to 1,000,000 INR.  Cons of getting an MBA in the USA Studying for an MBA abroad has various drawbacks, such as the expense or being unable to apply for employment. Students may find it more difficult than they anticipated to get visas or work permits for their studies abroad, which might force them to leave the nation quickly after graduation with little time for adjustment. Pros of Getting a PGDM in Canada  In Canada, PGDM programs are less focused on research and more job-oriented. Many MNCs are headquartered in Canada, which also has a low unemployment rate of 6.5 percent. While doing the course, students might complete an internship to get experience in the real world. Canada promotes the option of staying behind after graduation. To add to this, getting a student VISA for Indian students is much easier in Canada compared to the USA.  Cons of Getting a PGDM in Canada Comparatively speaking, Canadian PGDM courses are less costly than those offered in the US and other nations. PGDM programs typically cost between 15,000 and 17,000 CAD (8,00,000 INR-9,05,000 INR approx.)  Conclusion  Be it an MBA or PGDM; be it in India, USA or Canada, what's important for you as a parent is to be prepared for the educational expenses. Download the EduFund App today and take the first step to fuel your child's dreams. FAQs What is the difference between PGDM and MBA? MBA is a 2-year-long degree program whereas, PGDM is a one-year-long diploma course. For senior positions, should one get an MBA or a PGDM? Although both hold great importance if issued by prestigious institutions, the degree is sometimes preferred over the diploma. Which is more expensive - MBA or PGDM? The answer completely depends on the institute one has applied to. However, in general, the diploma program is more expensive than the degree. Consult an expert advisor to get the right plan TALK TO AN EXPERT
Here are affordable countries to send your children for UG courses

Here are affordable countries to send your children for UG courses

Every year, thousands of students wish to study abroad. The majority of those potential students have significant financial concerns. After all, it is not at all cheap to send your child to study overseas. Not everybody is eligible for scholarships. Few people do not get education loans because of a lack of collateral or documentation. Here, we'll explore the top and most affordable countries where you may send your child to study abroad and learn how much you need to save for your child’s quality education. Affordable countries for ug courses 1. Germany  Germany is well known for its prestigious universities. No matter their nationality, undergraduate students in Germany's public universities are required to pay zero or minimal tuition fees.  Study costs in Germany  At private colleges, the average annual cost of tuition may exceed EUR 3,000 (Rs. 2-3 lakhs). Your child can also opt for scholarships provided by private universities.  The monthly average living cost in this country is between 700 and 1000 EUR (Rs. 50,000 to Rs. 80,000). Students who purchase a semester ticket can use public transportation for no cost. Germany offers discounts on student IDs for the theatre, museums, opera houses, cinemas, and other cultural organizations. Additionally, there are DAAD scholarships to help with living costs that your child can consider. 2. Switzerland  Switzerland has a total of 12 universities and fewer higher education institutions dedicated to science and research. Eight of these universities are listed in the QS World University Rankings, with ETH Zurich coming in at number 10 overall. The top 100 universities also include four of these institutions.  One of Europe's most beautiful countries, Switzerland is renowned for its research findings, high standard of living, and excellent educational system.  Study costs in Switzerland  The annual tuition at state universities ranges from 600 to 1000 EUR (Rs. 40,000 to 80,000). Private universities may charge anything between EUR 2,000 and EUR 16,000 (Rs. 2 to 12 lakhs) annually. The average monthly cost of living is between CHF 1,400 and 1,800 (2-3 lakhs)  3. Denmark  Despite only having 5.5 million people, Denmark is among the most promising nations in the world and punches beyond its weight in the field of education.  Denmark's inventive nature makes it an ideal location for your study abroad experience, in great portion because of a strong emphasis on research and top-notch education. Danish higher education combines outstanding academic standards with learning strategies that encourage critical thinking, experimentation, and teamwork. Danish educational institutions are also very focused on practical education.  Study costs in Denmark  Tuition ranges from DKK 45,000 to DKK 120,000 per year. (Rs. 5 to 13 lakhs per annum). Monthly Living Expenses: DKK 6,000–DKK 10,000 (Rs. 60,000 to Rs 1 lakh)   Danish universities only get a small number of government scholarships every year to support exceptionally qualified foreign students. The government scholarship is divided into two components and can be awarded as grants to help with living expenses or as whole or partial waivers of tuition fees. Read more: Saving tips for your adults 4. Spain  Spain's institutions possess a strong reputation abroad and offer top-notch education at an affordable price, making it a great option for Indian and international students. For international students, particularly Indian students, the cost of living is favorable, and Spain is thought to have the lowest tuition costs in Europe.  Study costs in Spain  Around 800 to 2500 EUR (Rs. 60,000 to 2 lakhs) in fees are charged for bachelor's programs every academic year. The annual tuition for private universities is more expensive and often double the cost of public schools. On a student budget, the total monthly living expenses for international students range from 500 to 1000 EUR (Rs. 40,000 to Rs. 60,000).  source: pexels 5. Poland  With some of the oldest colleges in the world, Poland is renowned as an affordable European nation with a rich history and several major university degrees available in the English language. Due to its affordable living expenses and other charges (such as food and transportation), it is one of the top educational destinations for Indian students.  Study costs in Poland  The average cost of a study program in Poland ranges from EUR 4,000 to EUR 7,000 (4-6 lakhs) per academic year. The solid economy of the affordable European nation explains why monthly living expenses for Indian students average range is 500 to 600 EUR (Rs. 50,000- 60,000).  Read more: Hidden college fees that you need to pay 6. Estonia  With a population of only 1.3 million, Estonia is a rather small nation. In comparison to other countries, they have a great quality education system that is also inexpensive for Indian students. The Estonian Universities stand out for offering 100+ degree programs that are entirely taught in English.  Study costs in Estonia  A bachelor's degree should typically cost from 1,000 to 8,000 EUR (Rs. 1 to 7 lakhs) annually. It will cost approximately 11,000- 12,000 EUR (9- 10 lakhs) per year to pursue a specialized degree, such as a medical degree. International students can apply for scholarships, however, they are typically only for postgraduate studies. Monthly living expenses range from 500- 600 EUR (Rs. 50,000- 60,000).  If your child is exploring foreign universities for higher education but considering European countries is a must. Future costs for studying abroad will rise up so calculate how much it will cost you in the future rather than relying on current price rates! Use our college cost calculator to figure out the cost of studying for UG courses. Consult an expert advisor to get the right plan TALK TO AN EXPERT
Studying law in UK or USA: How to help your child decide?

Studying law in UK or USA: How to help your child decide?

In the previous article, we discuss how to financially prepare to send your child abroad. In this article, we will discuss what is better for children studying law in UK or USA 80% of Indian students flock to study in UK, USA, or Canada for law, MBA, and STEM courses. This is because these countries offer tremendous academic opportunities, a brilliant ROI, and a chance to work globally. Since the law is the most popular course pursued by Indians, let’s see which is better - studying law in UK or USA for your child.   Law in the USA  The USA is a preferred country for higher education for most of the students in India. It is one of the best choices for studying law because it offers a plethora of dignified universities to elevate your child’s CV. Not only will it improve their communication skills and strategies, and it can provide them with exposure to different law specializations that other universities may not offer. From moot courts to internships, the exposure offered by Law Schools in the USA is tremendous; this is why these schools have a very low acceptance rate and are highly competitive.    Some of the best law universities in the USA are as follows:  Yale University  Stanford University  University of California, Berkeley  Harvard University  Columbia University  Law in the UK  The UK offers the best environment to work and learn simultaneously. Since the law system is similar to that of India’s studying here allows you to practice in both countries. Your child can grab opportunities that will help them build connections and can work across the globe.   Some of the best law universities in the UK are as follows:  London School of Economics King’s College London University of Cambridge University of Edinburgh University College London Important parameters to consider while choosing the UK or the USA 1. Living costs  Living Cost is one of the necessities that have to be dealt with. Public transportation is not comprehensive in the United States of America. Hence, the transportation costs go a little because you will have to go for a private vehicle. The situation is better than in the United Kingdom and will cost you less. On the contrary, various activities, including eating out, shopping, and so on, are relatively cheaper than in the United Kingdom. The rents of apartments will vary from one location to the other, so you cannot fix a budget prior without knowing where you are supposed to live.   2. Tuition fees  Tuition fees for a law degree are higher in the United States of America than in the United Kingdom. The best universities offering the degree in regulation in the USA are often private. The best and most prestigious universities in the UK function under the government. The tuition fees in the best universities in the UK can range from around Rs 20,00,000 to Rs 28,00,000, whereas the amount is Rs 40,00,000 to Rs 54,00,000 in the USA.   3. Career planning  If you are drawn towards studying law in the USA, choose the university wisely that allows you to take the bar exam. To practice in the USA, this is a compulsory step. The UK proves to be better for students if they plan to pursue a career right after their education ends. You can study and then start working anywhere in the country. Also, UK universities have strong links with local businesses and legal communities, which will help you get a job immediately. UK’s new post-study visa and student policies have made looking for jobs easier for international students. Reasons why the UK is better than the USA   The UK is considered a popular choice in terms of cost, ease of finding a job, and practicing in both your domestic and the UK.  Exposure  The classrooms of the United Kingdom have students from various backgrounds and cultures. Hence, it will give you broad exposure to meet new people and develop skills.  No SAT or LSAT  You do not have to present your SAT or LSAT score to the universities to get admission. But this is not true if you go to universities in the USA.   Fees  Fees are another crucial factor that determines your budget. The UK is considerably cheaper than the USA, so you can go ahead with the universities in the UK if you are tight on budget.  Analyzing the ROI as well as the cost involved should be the deciding fact in helping your child choose between UK or USA for a law degree. Start saving to make sure your financial planning does not stop them from practicing law in their favorite country!  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT
Choose the “Best Fit” rather than the “Best” college

Choose the “Best Fit” rather than the “Best” college

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
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