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Studying abroad: How to plan financially for your child’s foreign education

Sending your child to study abroad can open up a world of opportunities for their future. However, many of us are left scratching our heads wondering where to even begin. We're bombarded with questions like: Should we invest in a child future plan? Or just rely on our savings?

Fear not, a well-thought-out and strategic approach can make all the difference in ensuring your child's educational journey is a success. So, we list down and take you through seven simple steps to help you prepare for your child's higher education abroad.

  1. Finalise the Country- When it comes to planning your child's education abroad, the first step is crucial. You must carefully select the countries that provide the most in return for your investment. The choice of course and country should align with your child's future interests, so it's essential to stay flexible and explore all possibilities.

  2. Cost Estimation- Before you dive in, it's crucial to estimate the total cost needed. This includes not just tuition and exam fees, but also living expenses, food, travel, and other miscellaneous costs. Don't forget to consider the depreciation of the rupee and market inflation - tricky factors that can sneak up on you! While predicting these trends may seem like a daunting task, fear not! Educational consultants are here to save the day. You can consult them as they can help you craft the perfect investment plan for your child's education.

  3. Analyzing International Currency- To accurately plan your child's study abroad expenses, it's crucial to understand the nuances of currency exchange rates and other financial factors. Prices operate differently in foreign countries, and living costs and fees can vary significantly. Therefore, having a solid understanding of the country's economic system is essential for a successful study abroad experience. This is simply because you don't want your child to be caught off guard by unexpected expenses!

  4. Funding- When it comes to financing your child's international studies, there are a variety of options to consider. Before seeking outside help, it's important to create a budget and determine how much you can contribute from your own savings. One of the easiest ways to reduce education expenses is by applying for scholarships and grants specifically for international students. Additionally, exploring education loans and other forms of financial aid designed for international students can provide valuable support. One suggestion is to fund your education by mixing mutual funds and other equities with your savings. To navigate this financial juggle, consider enlisting the expertise of a financial planner. They can assist you in making smart decisions when it comes to investments and equities.

  5. Plan and Invest Early- If you're thinking about sending your child abroad to study, it's a smart move to start making some strategic investments like mutual funds, SIPs and fixed deposits. This will help you avoid any financial headaches down the road. It's never too soon to start investing! The sooner you start, the greater your chances are of building a substantial nest egg for your little one's future.

  6. Keeping a check on investments- Reviewing your investments regularly, at least once or twice a year, is crucial to staying informed about your financial status. By promptly identifying underperforming investments, you empower yourself to make strategic financial decisions when needed!

  7. Move your portfolio to safer investments- If your money plans are going well, consider moving some of your investments to a safer option. This helps protect the returns you’ve earned. You could move your money into a savings account or debt mutual funds because they are safe and easy to access. Other than that, fixed deposits are also a good choice.

Getting a handle on finances is crucial from the get-go. If you're stuck or need advice on scholarships and grants for your child, reach out to Uninxt Study Overseas’ international education specialists. Book a guidance session to talk through all your concerns!

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