The number of students considering studying abroad in another country is growing. Parents must plan ahead of time for how they will fund their children’s upcoming dreams. According to study abroad consultants, the best way to begin is with proper planning and management of funds. This blog aims to show you how to manage money and help your child achieve his or her goals. So, let’s check how should you budget for your child’s study abroad dreams.
Cost Cutting for Study Abroad with IELTS
IELTS helps students save money because many prestigious universities only accept IELTS scores and offer low-cost courses. Most colleges and universities require a band score of 6.5 or higher, though some will accept a 6.0. Make a thorough investigation of the institution’s specific requirements to ensure you meet the bare minimum. Achieving a high IELTS score can be difficult; professional assistance is recommended. Hiring a private mentor can be very expensive. Because IELTS coaching in Noida is so inexpensive, you should only enroll if you intend to study in countries such as the United Kingdom, the United States, Canada, Australia, and others.
Tips to Study Abroad with Planned Budget
The amount of money that can be saved is directly proportional to the amount of time invested. The longer you invest, the more money you can save to fulfill your child’s dreams. The key to successful saving opportunities is good financial planning and management. The first step is to build an investment portfolio that will provide you with the exact number of returns when your child is ready to attend their dream college. The situation will not be overwhelming, and if you have the time, you can begin saving in smaller amounts. There are numerous investment opportunities available that will provide you with exceptional returns. The only things you need to do are start early and stay consistent with your investment.
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If both the father and mother are working, it will be a better investment to put money aside for the child’s future. The goal is simple to achieve and can provide some extra funds that can be put to good use. It will also lessen the burden of saving when compared to one parent working alone. Saving money can be accomplished at reasonable rates and in a shorter period of time. Investment planning by both parents can generate some good team spirit, and it will be much more responsible and consistent.
Estimate the Cost of Study Abroad
The overall cost of education abroad varies depending on the country. The first step is to calculate and then return the tuition fees.
Tuition fees and related academic expenses are the most important expenses to pay. In addition, expenses for lodging, food, utilities, and transportation are incurred. Understanding these expenses will assist you in determining how to manage your funds and bring them within your goals, one step at a time. Making wise budgeting decisions will assist you in providing the best possible future for your child.
Enlist Your Sources of Funding for Study Abroad
Academic funding can be a daunting prospect. So, the first step is to determine how you will or will not be able to provide the funds. There are numerous external options available for the same, but you must first determine the amount of savings you have. A credible amount of money saved and relying on third-party sources for the rest is the ideal way to fund your child’s education expenses. There are numerous scholarship and grant opportunities available for students to pursue their education abroad.
Even if your child is still young and not even close to the age of college education, you will have far more access and time to determine how to set up and achieve financial goals by the time they reach that age. Allow yourself time to search for options that will provide rewarding returns and invest in them accordingly.
Diversify Your Education Corpus
When it comes to investment options, the normal tendency in Indian households is to go ahead and get roped into fixed deposits, or FDs. Even though it is not an entirely bad investment option, the return rates are quite low. When it comes to a child’s education, FDs, gold, and real estate are the safest investment options. There are numerous other investment options that can provide significantly higher returns over the long term. Investing in equity markets in both India and the United States is a good place to start. Dollar investments definitely outperform rupee investments, especially when it comes to higher education abroad.
Rupee-based investments can be difficult for education abroad because a constant depreciation of the Indian rupee against the dollar will eventually raise tuition fees and make it an even more difficult choice. Diversification of dollar investment opportunities can actually help with purchasing power.
Periodic Review of Investments
Reviewing your investments once or twice a year is a good practice and the best way to evaluate how they are performing. If you believe your investments are underperforming, you can reinvest in better portfolios to save time and earn higher returns.
Choosing the Right Platform To Save
There are numerous platforms from which to set your financial goals for managing funds for your child’s higher education. You must conduct thorough research to ensure that the platform you select will help you achieve your financial goals while also keeping up with the rising cost of education. The platform you choose to invest in for your child’s education should be comprehensive enough to account for inflation in tuition fees, housing costs, and the total cost of living expenses. Select a platform that has investments in a variety of asset portfolios. Even though it is widely accepted that equities are the best long-term investment option, having the option to invest in fixed deposits as a safe bet would not be a bad thing. Choose the platform that will provide you with the best educational options for your child.
Consult an Investment Advisor or a Study Abroad Consultant
If you are completely new to this and have no idea where to start, but are confident that your child will benefit from international education, it is best to seek the advice of an investment to study abroad consultants in India first. Investing with the right idea is the best way to avoid investing blindly in financial opportunities you don’t understand. They will assist you in devising the most effective strategy for making your child’s dream a reality.