Saving money is not enough to secure your child’s education abroad; Carefully employed and organized financial plan is required. By planning the right plan, you can provide your children with the resources that they need to make their future.
Here are some essential steps that can help you cover your child’s education costs in India and abroad:
Step 1: Count future education expenses
Inflation and increasing expenses are the first things that come to meditation when considering education. The cost of education varies greatly between India and other countries. To make a successful plan, you have to consider:
– Tuition fee: This is the most expensive part. Public universities in Germany charge a fee of ₹ 10 lakh per year, while private universities in the US or UK charge a fee of ₹ 40-50 lakhs annually.
– living expenses: These include fare, utilities, food and transport.
– Travel and Visa Fee: Flights, local transport and visa processing are not cheap.
– health insurance: This is a requirement for international students in many countries.
– Miscellaneous expenses: Other things to consider include books, equipment, personal expenses and unexpected crisis.
Step 2: Start initial savings using the right financial devices
Parents should start investing as soon as possible, regardless of whatever strategy they decide. If you start investing early then your money will have longer to grow. Early investment also gives you freedom to make small, more economical investments. Choose a savings account for short -term goals, fixed deposits for safe and coherent growth, and mutual funds for long -term development.
Step 3: Select the correct investment plan
If you want to be able to pay for your child’s educational costs, it is important to choose the right hair plan. Choose an investment plan that gives you freedom to invest at your own pace and according to your needs. Some plans let you decide how much you want to pay every month and how often you want to pay it.
Step 4: Explore scholarship and education loan
Scholarships and students can help with additional funds. Many Indian banks and NBFCs provide education loans to pay for the expenses, tuition and other fees related to study. When selecting the loan, look for low interest rates, flexible repayment schemes and tax benefits.
Step 5: Prepare for pre-departure expenses
Document requirements and visa fees vary by the country. Some countries demand medical testing before giving visas, and most universities need to get health insurance for students. Your budget should be responsible for these expenses.
Step 6: Currency exchange and inflation plan
Tuition fees increase over time, and exchange rates are raised. Create an international bank account for your child and consider using the Mudra Card. Some banks help you save money on transfer by providing exchange services with better currency rates.
The annual expenditure of education increases by about 5-7%. Factor inflation in estimates of your future expenses to prevent unpleasant surprise at the last minute.
A combination of mutual funds, fixed deposits and saving accounts can provide a solid financial foundation. You can stay ahead of the game with inflation and currency swings.
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