How to manage the funds for your child’s study abroad dreams?

How to manage the funds for your child’s study abroad dreams?

Study Abroad Dreams

Every year, thousands of parents yearn to send their children to Study Abroad for Higher Education. The United States, United Kingdom, Canada, Australia and Singapore are among the most popular education abroad destinations. Managing the finances to finance your child’s study abroad is a significant challenge for the parents of the child. However, a little planning and fund management on the part of the student’s parents will make their study abroad dreams come true. If, as a parent, you are worried, stop worrying! This blog post will offer tips and advice on how to manage funds for your child’s study abroad dreams. Let’s find out now!

Tips for financing your child’s studies abroad

  • Buy Forex Chart
  • Make your budget plan
  • Try to reduce daily expenses
  • Start saving money as soon as possible
  • Make a smart plan

The cost of studying abroad

Basically, the cost of studying abroad consists of two main factors: tuition and cost of living. Besides tuition, other expenses include accommodation, transportation, food, electricity, and utilities. The overall cost of studying abroad ranges from 20-25 lacs to a maximum of 1.0-1.5 cr. To take care of all these expenses, parents need to plan, invest and budget for the long term.

How to plan your child’s studies abroad?

  1. Make an estimate of the total cost of higher education- Calculate tuition fees and write down other expenses, such as accommodation, food, utility bill, and transportation bills. Managing the budget will help make the transition as smooth as possible.
  2. Start early and do long-term financial planning- As parents, start making personal sacrifices and plan your child’s international education early. This will allow your child to reap the benefits of studying abroad later. Try to reduce non-essential expenses and check your spending history. Get into the habit of saving regularly for your child’s education. For example, you can set an amount each month to save. Saving a regular amount each month from your regular income will help you meet your child’s long-term study abroad needs.
  3. Preparation time- As soon as studying abroad becomes a goal for you and your child, start researching the courses you want to take and the country you will choose as your study destination. Start preparing for financial aid and scholarships also under the plan
  4. Get to know the basic requirements- If your child’s goal is to study abroad, one of the most important requirements will be to be independent to fend for themselves. In an international country, where natives communicate in local languages, language skills become essential. Therefore, learn and master the language skills and problem solving skills to survive in a foreign country.
  5. Health insurance- You should also provide health insurance for your child while studying abroad. You can take out health insurance directly from the school/university to cover your child. Additionally, many private companies also sell health insurance plans to students, such as HTH Travel Insurance and Compass Benefits Group.
  6. Take care of inflation and exchange rates- Take care to research your country’s past inflation rates and the depreciation of its currencies against the world’s major currencies. The information gathered from the research will help you calculate the additional amount you need to fund your child’s study abroad trip. This extra amount needed, you can add to your saved education funds for your child’s future higher education abroad.

How to Arrange the Finances for Your Child’s Study Abroad Dream

  1. Source of funds- Start by making your own budget plan and trying to figure out how much you can spend with your own savings. Then try to contact other sources of outside help. There are many avenues to finance your child’s international studies. You can also apply for different scholarships and grants offered by universities to reduce the cost of education. You can also apply for student loans to study abroad.
  2. Start preparing early- If your child is still young and you’ve decided to send them abroad for higher education, start investing early. This will go a long way in saving you from future stress and responsibilities. You won’t have to bear the financial burden when your child grows up and studies abroad. Start investing in systematic investment plans, mutual funds, fixed deposits, stocks, etc. as soon as possible.
  3. Review your investments regularly- Always make it a good practice to periodically review your investments to stay up to date on your current financial situation. If one of your investments is not performing as expected, make a wise decision about it.
  4. Invests with a less risky approach- If you are on the right path to achieving your financial goals, always try to make your investment portfolio less risky. This way, there will be less risk of losing your accumulated returns so far. Whatever returns you’ve accrued so far, try investing in a savings account or mutual funds. These investment options benefit from both security and liquidity. You can also consider another safe option: fixed deposits.

Final Thoughts

Once you have decided to send your child to study abroad, the next step is to find funds to finance the studies. Funding for your child’s study abroad trip is something you need to figure out as early as possible. Good planning on your part will not only protect your child’s study abroad trip, but also make it smoother.

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