Every Indian child fascinates by the idea of studying abroad. It’s their dream to get higher education abroad. Parents too dream of sending their child to other countries for studying. But all these dreams can become reality only if you have done savings in the right way. Overseas education is an expensive plan and while planning, parents need to think about various factors like college fees, living costs, travel expenses, etc. to make an overall budget. There are many factors that parents should consider before dreaming of the foreign education of their child. Have a look at them.
Big dream demands bigger money
Yes, overseas education costs a handsome amount of money. The annual expenses in a top university of the world can cost you around $67,000* (Rs 44.89 lakh) which may change according to the rate of rupees to the dollar. It’s not like every foreign university will cost you the same, but at the same time, there is no denying that it costs much more than the education in India.
Being a parent who wants to give their child a better future through overseas education, you need to consider all expenses while keeping in mind the education inflation and the varying rates of tuition fees every year. Though the cost of education in abroad is higher, yet Indian parents consider it for their children. Nearly 553,000 Indian students are studying abroad and this number is getting higher every year with people saving more and planning better.
Invest in different financial options
India is a country with most people from the middle to low-income class. And for them, overseas education is nearly impossible if they don’t do savings and investments. Most Indians try to do savings through investments in FDs lands, gold, real estate, etc. But cashing out from these investments may take time.
These investments are stable and reliable, however, they are illiquid. Hence, parents should consider investing their money in the equity markets of India and America. This will help them provide significant returns over time. Investing in foreign stocks is also a good option for parents as they will earn and spend in dollars which will help them at the time of education inflation. Also, try to invest in mutual funds and other similar options.
Early savings are best
That’s right. As early you start saving for your child’s education, it will pay off best in the future. Start saving when your child is born or is an infant. Higher the savings, better the chances of your child getting an education in a top foreign university.
The early savings will also help you from not taking a loan or other extra financial burden in the future. As parents, you should invest in child insurance plans as early you can. These insurances will work as helping hands when you need to change the dream of your child’s overseas higher education into reality.
Choose the right platform to invest
One should invest their money in less risky yet high return giving platforms. Foreign education needs an ample amount of money; hence you should choose the right platform that can help you in raising money for your child’s higher education in foreign that includes inflation, tuition fees accommodation fees, and the cost of living.
Review your investments
Just investing is not enough. You should review your investments periodically as it will help you compare the fund’s performance with its benchmark indices. This way you can replace the non-performing or underperforming funds with better performing funds. This will assist you to reach the desired goals in the right way.
Once foreign education was reserved just for wealthy Indians, but now with different investment platforms, insurances, and people earning and saving more, it has become possible for middle to low-income parents to dream of higher education abroad and make it real for their children.