How to Fund your Child's Higher Education Abroad?
Published On Aug 20, 2021 10:00 AM By InsuranceDekho
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The education of a child is definitely the topmost priority of a parent. Providing a child with enough financial support is what almost every parent strives for. It is no myth that with increasing inflation, educational costs are on the rise. Now to provide a child with the facilities and education they aspire to achieve, a parent must save at least double the prices of the educational facilities in today’s world. There are a lot of investment instruments available that can provide you all the benefits required to help your child pursue their higher education abroad.
Even after saving for as long as they can remember, many parents find it difficult to send their children abroad for their higher education as the savings are usually not enough. However, it is suggested that with proper planning, they can ensure their child’s educational goals. Education loan is a popular option amongst most parents nowadays. They opt for it to financially support their child’s educational goals.
While educational loans are popular, there are also other effective ways to save and grow your money to help your child financially. You must start investing as early as possible to be able to provide them with financial help when they require it the most. It is suggested to start investing as soon as your child is born.
Also read - 5 Most Frequently Asked Question For Child Life Insurance Plans
Funding A Child’s Higher Education Abroad
Before investing in any instrument you must consider all the aspects of different available plans and choose one that can provide you with all the necessary benefits required to help your child reach their goals financially. To understand investment better, read the following -
1. Source of funds
There are different ways to fund the educational cost of your child. You need to determine how you want to fund it and how much exactly you need to fund. Generally, the first option that comes to mind while funding for the expenses is education loans, but you need to remember that most lenders normally fund around 80-85 % of a course’s cost. This means that around 15 to 20 percent of the money needs to be paid back to the lender by the parents or guardians.
2. Start investing as early as you can
If you have not yet started to save for this cost, you must start as soon as possible to be able to help your child financially at the right time. To pool a good amount of financial support even to be able to avail of a loan in the future, start investing early no matter what your child’s current age is. Delay on investing for this expenditure might not get you the corpus you require.
3. Shifting corpus to less risky avenues
Experts suggest investors shift their investments to less risky options as they start getting closer to their goal. Once you are about to reach the corpus you need, after investing for a long period, you must move the corpus to a less risky fund. This makes sure that you don’t risk losing it.
In conclusion, whether you already are saving for the future or not, you must invest in your child through child plans or other investment instruments because sometimes, the amount you think you saved for your child’s future might not be sufficient for your child to pursue their higher education abroad.
Also read - When is the Right Time to Purchase a Child Life Insurance Plan?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.