Your child’s foreign education: can you afford it?

Start investing today to finance your child’s foreign education. Here’s how.

Your child’s foreign education can you afford it

A degree from a well-known college abroad is one of the most beneficial experiences your child can have. In addition to top-quality education, they also get to experience the life and culture of the new country they are in. And when the time comes to seek employment, a foreign degree can do wonders to their resume. 

However, there is one issue that’s a significant concern for parents: the rising cost of education all over the world. Although getting your child a foreign degree can enhance their career; you might be asking yourself if you can afford to finance three (or five) years of international education. 

Cost of education in top foreign destinations

Tuition fees, living expenses, food, and travel costs can vary from one university to another, and more importantly from country to country. To add to the uncertainty, the cost of education has also been on the rise. Let’s consider the cost of education in some leading countries. 

  • The UK : The average annual tuition fee for undergraduate students in the UK is around £10,000 (around Rs 9.2 lakh). With living expenses around £12,000 (Rs 10 lakh), the total cost per year can go up to Rs 20 lakh.
  • Germany : Tuition fees and living expenses in German universities can be around €20,000 (around Rs 17 lakh).
  • The US : This is the most popular destination for higher studies, so it is no surprise that the annual tuition fees and living expenses at top-tier colleges can come up to $60,000 (Rs 42 lakh).
  • Australia :  International students have to pay around AU$29,000 (around Rs 15 lakh) in tuition fees for an undergraduate course each year. This figure does not include courses like medicine and veterinary degrees, which generally cost more.
  • Canada : The average tuition fees for international students in Canada is around CA$25,000 (Rs 13.6 lakh) per year. You also need to have at least CA$10,000 over and above the tuition fees for living expenses as per Canadian student visa requirements.
  • Singapore : When it comes to higher studies, Singapore is much more pocket-friendly than the UK or the US. The average cost of an undergraduate degree in Singapore is around SGD$12,500 (Rs 6.5 lakh). Living expenses can be anywhere between SGD$750-2000 (Rs 4.6-12 lakh) per year.

Investment options to fund your child’s education

It is not easy to conjure up this kind of money at short notice (unless you win a lottery). So the next best thing is to start saving. First, you need to come up with an approximate amount you want for this purpose. In addition to the current cost of tuition, you need to consider other factors like inflation and the number of years before they are ready for college. 

Equity mutual funds and Unit Linked Insurance Plans (ULIPs) are the best options for you to invest and grow your money. They offer substantial returns when you invest consistently for the long term. Therefore, the best strategy is to start investing towards this goal as early as possible. The longer you invest, the bigger will be your corpus.

Child education plans

Many companies offer special child education plans designed to help you finance your child’s higher education. These are insurance plans that provide assured financial benefits, payable during the tenure of the policy. In addition, they also offer life insurance cover. In case of death or permanent disability of the policyholder, the company provides a lump sum amount. 

Your child’s foreign education: can you afford it?

Conclusion

A good education is perhaps the best gift you can offer your child. And when they receive a degree from a world-class institution, it holds the promise of a bright and secure future. You can make this dream come true by starting your investment journey today. Invest in a children’s education fund and reap the benefits over the long term.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

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