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How to prepare financially for your child’s abroad education?

Financial assets attract more interest than saving deposits in the bank. Hence, invest in different stocks, mutual funds, bonds, etc. and maintain a diversified portfolio to gain maximum returns.

How to prepare financially for your child’s abroad education?
Taking an education loan can prove to be advantageous than spending all of the savings at once.

It is the wish of every parent to give the best quality education to their kids which might include sending them abroad to study in the best of schools. However, with the soaring prices of education internationally, even the lifetime savings of parents seem to be inadequate to fund this dream. Therefore, experts say, it is important for parents to start the necessary planning when their child is young. 

Basil Ali, Co-founder and COO, Edumpus says, “The best way to start the required preparations is to earmark funds for the child’s education. Financial assets attract more interest than saving deposits in the bank. So, one can invest in different stocks, mutual funds, bonds, etc. and maintain a diversified portfolio to gain maximum returns.” Note that, regular disciplined saving can help the fund grow and reduce the burden in the future.

Having said that, while you make your efforts to save for your child’s education, it is also important to make them ready for different competitive exams that can help them prepare for competitive tests. 

Ali says, “Many scholarships are offered to students through various qualifying rounds that include entrance tests, group discussions, and personal interviews. They also consider academic performance and extracurricular activities participated in. It becomes very important for the student to be astute to crack these exams and be a well-rounded applicant.” 

This comes with an obvious disclaimer that the students should not be overburdened with the host of activities that they can do at the cost of making their application stronger. 

More often than not, experts point out parents can find it difficult to plan and prepare to send their kids abroad to study. “The internet has all the information that one may need to make the decision but sometimes it is not enough to take care of all the apprehensions that parents might have. They would need personal guidance to see them through this journey which can come from parents who have already travelled the path,” says Ali. The ones who have sent their child abroad to study understand the nitty-gritty of the process. 

Experts say one of the most important things to keep in mind is – one should not hesitate to consider an education loan. In spite of all the savings, Ali explains, “taking an education loan can prove to be advantageous than spending all of the savings at once. Educational loans are good alternatives as they are also tax-deductible under the income tax act.” 

Note that nowadays, education loans are easily provided at competitive interest rates as well. 

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