According to HSBC’s Quality of Life 2024 survey, 78% of Indian parents send kids abroad, risking retirement savings.
In today’s globalized world, international education offers unparalleled opportunities, but it comes with a hefty price tag. So, in this article, we will walk through essential financial planning tips, such as the need to understand currency exchange rates, explore loan options, find scholarships, and more to plan and manage expenses for abroad education.
Reading this guide will help parents prepare for their child’s future without worrying about education loan repayment or any other concerns. So, let’s glance through the essentials.
Starting Early Financial Planning
Parents who aim to send their children abroad for higher education need to start planning early. This means reducing non-essential expenses, practicing controlled spending, and regularly monitoring the other required expenses. Early planning can give time to adjust and modify expenses to fit the monetary goal for their child’s abroad education.
Understanding International Currency
Parents also need to understand international currencies, conversion rates, and more. They need to know about the economic system of different countries around the world or at least the destination they are planning to choose for their child’s higher education.
Understanding the currency will help them get a clearer picture of the nearest estimate for the cost of studying in a particular country.
Creating a Cost-to-Study Estimate
Creating a cost-to-study estimation can help parents get a clarity of what they might be looking at to fit as per their financial capacity. It is important to list all possible expenses.
This will allow them to create a budget for their child’s studies and gauge if they need to take a study abroad loan.
Exploring Education Loan Options
There are many ways to fund education abroad, but the most secure and efficient way is by taking an education loan. Banks across the country offer education loans for abroad studies that parents can check to secure funds effectively for their child’s education.
Exploring and comparing various loan options can help them choose the right one based on their needs. There are banks and other financial institutions that can help in financing education abroad based on the criteria for an education loan they fit into. These loans are such that parents do not have to worry about the financial burden that is associated with abroad education as the student can start repaying the loan after completion of studies.
Finding Scholarships and Grants
Parents can also look into scholarships and grants that are available for international students. Many countries, universities, and organizations offer these scholarships for international students like the national overseas scholarship that is offered by the Indian government. These scholarships offer monetary support to students while helping them boost their profile.
However, these scholarships are highly competitive as students from across the country or around the world are applying for a handful of awards.
Planning for Emergencies
One must always plan for emergencies especially if they are taking a step towards studying abroad. To be secure in this regard parents need to create an emergency fund that can cover unexpected expenses like medical emergencies or other unforeseen costs. The fund must be accessible when needed.
Insurance is another way to secure the well-being of the child during their stint abroad. Purchasing an all-encompassing policy for hospitalization, accidents, and routine care is ideal. In addition to that it will be useful to get travel insurance in case of unforeseen cancellations, lost luggage, or other issues.
Teaching Money Management
Before sending their children for education abroad, parents need to ensure that they know how to manage money. Creating a budget, managing expenses responsibly and saving are the essentials.
This can be done through online courses, financial planning apps, and books that can help them understand and manage their finances more responsibly.
Encouraging to Work Part-time
Parents should also encourage children to take up part-time work or internships as it will allow them to become more financially independent during their time of study and may also provide the necessary exposure. International students can find jobs on campus or off campus depending on the laws of the country.
Students can also find paid internships while pursuing their studies that can help them gain on-ground experience in their potential careers. This can also help in developing the right skills for the job while earning from it.
These tips can help parents plan their child’s study abroad budget. However a little help and professional guidance can go a long way, and this is where overseas education loan experts come in. Let us see how they can help better understand the financial essentials for studying abroad and other aspects related to overseas education loans.
Managing finances for studying abroad can be complicated. Seeking professional help from experts can help shed light on things that need to be considered and managed to plan the abroad education journey effectively.
For parents and students who are looking for financial advice regarding studying abroad, Élan Loans is the ideal place. We not only offer complete guidance for study abroad loans, but also help students understand the financial needs of their journey. Our experts assist them to compare loan options from different sources and ensure that they get the best deal. Whether students or parents are looking for NBFC education loans without collateral or secured loans from private/national banks, our experts help them to get the ideal loan.
So, if you’re a parent or student who wants to know more about this, you can reach out to Élan Loans today!
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