Nowadays, there are a plethora of students who seek higher education at prestigious colleges or universities overseas. Once you and your child had decided to pursue higher education abroad then the next step is to manage and figure out the required funds. Finances are one of the most overwhelming factors when it is to your child’s overseas education but proper planning about the management of funds helps in safeguarding your child’s higher education overseas dream. However, a lack of these funds can hurt your child’s dreams and prevent you need to starting planning in advance. Higher education abroad is not cheap and to afford that as a parent you need to save and invest accordingly to ensure enough money is there for your child’s higher education. Know how to manage funds for your child’s study abroad education and more in this blog!
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It is crucial to start early as the magic of compounds works when the time period of investment is long. Thus to achieve proper financial management you are required to avoid slipping times through your hands. You need to start early to prevent your child from growing and when it is the time for them to go abroad then you are suddenly struck by the realisation that you don’t have enough. So you need to start planning by initiating an investment portfolio especially dedicated to this particular goal with long-term investments and returns. If investments are made with the right amount of time then these investments can produce remarkable returns. Further, you may be surprised that you can even start with small amounts as your investments are for a long time. The thing that is only required is that you need to begin soon and need to be regular with your investments.
When both mother and father are earning then both parents can equally contribute to the overseer education of their child. Further by doing this the goal and affordability of overseas education can be achieved quickly. When both parents contribute a part of their salaries each month for this purpose then the amount can be larger compound thus resulting in the reduction of burden on only one parent. Another main reason for equal contribution is that the goal can be accomplished earlier and at the best possible time. Thus when it is about effective funds management then contributing equally by each parent can be a good move as a team is more responsible and consistent as compared to an individual.
Estimate the Cost of Studying Abroad
When you had started earlier and had decided to contribute equally then it’s time to calculate. It is the time when you need to consider every possible thing you need to commit. Starting with the tuition fees which are the biggest expense followed by miscellaneous expenses including food, electricity, accommodation, transportation and utilities. This step can help you in making wise budgets before your child is prepared to initiate their higher education overseas.
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Enlist Source of Funds
There are a plethora of ways by which your child’s international studies can be funded. Thus this step is very vital for the management of funds all you need to do is before reaching for any external assistance, you must plan your own budget and analyse how much you are able to spend from your own savings. One of the prominent ways to cut down overseas education costs is by the help of various scholarships and grants that are available for international students. Further, you may also look out for various education loans or other international educational assistance for students.
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Even if your child is still young but you want to send them overseas for higher education then it is an absolutely perfect idea to make investments including fixed deposits, mutual fund SIPs, etc. all these go a long way and prevent you from any kind of financial burdens.
Periodically Review of Investments
One of the best-taken steps is reviewing investments on periodic bases such as once or twice a year so that you are updated about your condition (financially). This helps you in figuring out whether your investments are functioning or not and if not then you can make some decisions within time.
Shift your Portfolio to Less Risky Avenues
When you are on the way to your financial goals, then it is recommended to shift all the investments to avenues so that you are at minimum risk thus you may not lose entire accumulated returns. To achieve this you are required to shift your accumulated returns to either a debt mutual fund or savings account. All these provided options are a good idea as they come with high safety as well as liquidity.
Choose the Right Platform
There are a plethora of platforms that may help you to make proper management of the funds required for the future of your child’s education abroad. One such platform that helps you in each step extending from visa application to choosing the right fit for you is Leverage Edu – Your Trusted Study Abroad Expert. Our experts can help you in analysing the right goals that you can consider amid the rising costs of education.
Hope now you know the answer to how to manage funds for your child’s study abroad education!