Studying abroad to get costlier: Are you financially prepared for the cost surge due to inflation? | Aviva India

Studying abroad to get costlier: Are you financially prepared for the cost surge due to inflation?

For a long time, when one thought of higher education, they would not think beyond the best universities in India. But now, we see the world grow smaller and opportunities to study abroad become more feasible. Ivy league colleges are not just the dream colleges of American children. Indians are now also looking at colleges in Germany, Canada, UK and Australia to pursue the courses they love. As appealing as “Harvard” was, and perhaps still is, there has been a change in the priority of children to study the course they love, even if it is from a college that is lesser known.

 

While all of this does sound very rosy, it often is not that way. The tuition fees of most of the well reputed institutes abroad is an average of Rs. 40 lakhs. The cost of education abroad is affected by many factors, and the fall of the rupee has not made it any easier for the aspirants. But as parents, we would not want the dreams of our children to be shattered due to lack of funds. But good financial planning can help bypass this problem that most people face in this age.

 

Long term funds are the best to invest in for your childs long-term goals. There are different types of funds one can consider which have different rates of return. Each comes with its own set of benefits and drawbacks. However, the benefit of investing in a long-term plan is that the long-term options are often less risky and offer guaranteed returns. When it comes to their child’s education, no one really wants to take a chance, hence, choosing a good long-term investment becomes important.

 

While there are many common plans which one can regularly invest in, such as the public provident fund (PPF), fixed deposits, gold bonds and more, these plans are not created with the intention of saving for one’s child’s education. These are often general investment forms. Investing in a plan that is made for your children’s education offers far greater advantages. They are designed to help your child’s education expenses and encourage them to pursue their dream. A lot of companies, like Aviva Life Insurance, offer plans which are tailor made for your child’s education. Moreover, these plans also offer tax deductions under section 80 (C) and 80 (DD). These plans allow for a lumpsum withdrawal upon maturity so the child can now finance their own education. One of the advantages of this investment plan is that it does not require regular investment. With life being very uncertain, this offers an advantage when compared to other investment options which may lapse due to non-payment. The death of a parent should not be the reason a child does not pursue their education, and this plan helps secure your childs education and dreams.

 

Attending their dream college is every child’s dream. These colleges and universities often offer a well-rounded experience which moulds the child to be better suited for the working world. Investing wisely will make sure your child gets nothing short of the best.

 

Related Articles on Child's Future Planning

 

AN Sep 65/22

 

 

 

Talk to an Expert

Blog Category: 

Leave a Reply

3 + 11 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.