Don’t ignore incidental costs of studying overseas
Over the years, educational costs have increased exponentially. For instance, a professional degree that may cost Rs.10 lakh today could easily cost between Rs.40 and 50 lakh, 15 years hence.
In spite of a rise in incomes, it is becoming challenging to keep pace with inflation rates. Given the situation, there is a need for financial planning to help meet short-term and long-term financial goals. For example, if your child is planning to study abroad, it can be a good idea to invest for education and save for your child’s future.
This article looks into cutting down on the incidental costs of studying overseas, where to invest in building a corpus and supporting your child’s education.
Incidental costs you can trim include:
Finding accommodation features high on one’s priority list when planning to study abroad. If the course is part of a university or college offering campus accommodation, it can be a huge blessing with regards to accommodation costs. Else, options such as renting a room or sharing an apartment can help cut accommodation expenses.
Most developed countries have reliable public transport systemsfor local commuting. Taking the train, metro or bus can save transportation costs. Moreover, discounted fares for students can also be availed for public transport.
Also, booking flight tickets well in advance can bring in a good deal of savings. Typically, last-minute bookings can strain one’s budget. With proper financial planning, your child can use their money productively.
Student life can be hard. And, especially if one is studying overseas. It requires carefully controlling and monitoring of daily habits to ensure that the budget stays on track. Keeping a check on expenses such as outings, meals, dining, shopping and the like can help save money.
How to build a corpus to fund overseas education?
Mutual fund investments are regarded as excellent investment vehicles that bring in decent yields and generate long-term wealth. You can invest in mutual funds via Systematic Investment Plans (SIPs) at regular intervals and gradually increase the instalment amount. The benefit of mutual fund investment via SIP is that it instils financial discipline and makes saving a regular habit. If you stay invested for a while, the power of compounding can grow your money and help you meet your investment goalsquickly.
Since professional portfolio managers manage mutual funds, they invest in schemes that align with your risk tolerance, investment goals and investment horizon.
It is a wise choice to start planning for your child’s future at an early age. This is to ensure that when the time arrives,you have an adequate corpus to support their educational aspirations. Mutual funds can help you reach such financial goals with ease.