What to consider when sending your child abroad for higher education

Parents often dream of sending kids abroad for higher education. But just dreaming is never enough. Parents need to arrange sufficient funds to fuel this dream. However, inflation has made this objective a lot harder than previously imagined. So, as a parent, you need to save up well in advance to fund your child’s higher education abroad. While planning a child’s higher studies in a foreign country, keep in mind that along with admission and tuition fees, you also need to provide for food, lodging, and health expenses. Here’s a list of factors that parents need to keep in mind before preparing to send their youngsters abroad to pursue their careers. 

Start saving from day 0 
Yes, you read that right. If you are planning to send your child abroad once he finishes school, it’s time for you to start saving up right the beginning. Remember, judicious financial planning is the key towards your child’s future success. Your child may be in middle school today, but before you realise, he will be ready with his luggage to fly to the US or Europe. Therefore, start with an education savings account in your child’s name or make some smart investments, like buying a plot of land. All these will invariably give you sizeable returns once your child has grown up and is ready to go to college. The idea is to be consistent with the practice of saving, even if it means saving small amounts occasionally. 

Help your child choose the right study destination 
Choosing a cost-effective study destination will help you manage the expenses better and your youngster can also continue pursuing his career without worrying too much about being a burden on you or paying back your debts. Choosing an ideal study destination means opting for a place that offers a sound quality education but is also not hard on your pockets. 

Let it be a joint contribution 
It is often easier for double income parents to send their child to foreign countries in order to pursue their dream career, compared to the ones where only one parent does all the saving. If both spare a part of each month’s salary into their child’s education funds, the target will be easier to reach.  

Widen your saving/investment horizon 
Indian parents often prefer investing in Fixed Deposit Accounts (FDs), and liquid assets like gold or real estate. However, contrary to popular belief, they often take a lot of time to secure proper returns. Therefore, it is important to widen the investment opportunity by spending in equity markets or foreign stocks that have a better and quicker chance of returns.  

Moreover, choosing the right bank is also important. You need to be certain about the interests they are offering and the place they are in, in the financial market. Therefore, having multiple assets in hand is the most definite way out while saving for a child’s foreign education.