How to manage funds for your child’s study abroad dreams

Consider every possible expense that you will have to make. While tuition fee might be the biggest expense, do factor in other miscellaneous costs such as accommodation, food, electricity, transportation and utilities. This will help you make a wise budget before your child is all set to start their higher education abroad. 

It’s important to understand the difference in currency, exchange rates, etc. to make an accurate estimation of your child’s study abroad plan. Prices work differently in other countries, and fees and cost of living vary, therefore, one must have a basic knowledge of the country’s economic system.

There are different ways to fund your child’s international studies. Before you reach out to any external assistance, make your own budget and evaluate how much you can spend from your own savings. One of the simplest ways to cut down on education costs is by applying to available scholarships and grants or international students. You can also look at education loans or other international student support for financial assistance. 

If your child is still young but you wish to send them abroad to study, it is a wise idea to make some timely investments like mutual fund SIPs, fixed deposits, etc. This goes a long way to save you from any future financial burdens. 

It's good to review your investments periodically like once or twice a year to keep updated about your financial situation. If any of your investments are not performing, you can make sound decisions in time.

If you are on track with your financial goals, it’s recommended to shift these investments in avenues with minimum risk to ensure you don’t lose the entire returns accumulated so far. For instance, you can shift your accumulated returns into a savings account or debt mutual funds as these options provide a high degree of safety and liquidity. Fixed deposits are also a good idea. 

Finances are something you will have to figure out right from the start. If you are stuck anywhere or need any advice related to scholarships and grants available to your child, reach out to IDP’s international education specialists, and schedule a free guidance session to discuss all your concerns.