#Ep 5: The Consistent Compounders Show :Stay tuned to catch Saurabh Mukherjea in conversation with Sohini Andani, Fund Manager, SBI Mutual Fund.

Give Your Child Financial Security While Studying Abroad With Western Union

Sending their child abroad to study is the dream of many parents. Even if you have access to the finance that is required for your child’s study expenses abroad, you need to plan carefully.

February 22, 2021 / 01:45 PM IST

The Challenges of Education Abroad

Along with educational challenges, your child will have to adapt to a new culture when they go abroad. It would be distressing to additionally burden them with financial issues. With a bit of careful planning, you can make each phase of your child’s college life a smooth transition without financial stress.

Assuming a three-year programme, here is what you can expect from each year. By planning your finances accordingly, you can meet your child’s changing financial needs during each phase of their education.

Freshman Year

The first year of college abroad will see a higher level of expenses as your child adjusts to the new way of life personally and at the university. There will be additional clothing requirements, accommodation expenses, books to buy, as well as a host of miscellaneous, unforeseen expenses for which you will have to send money.

Sophomore/Junior Year

This is a stabilisation stage wherein  the child gets adjusted to the routine and begins to merge culturally. By now, most studentsfind part-time jobs. But in case your child does not, you will have to bear all the incidental expenses, accommodation, and tuition fees.

From this year onwards, two types of travel expenses may occur. Firstly, your child may wish to visit home during breaks. And secondly, they may show interest in exploring the country. Both activities can result in additional expenses.

Senior Year

The final year of education is marked with job applications and visa processing charges in case of getting hired. Your child may have to travel for interviews with prospective employers. Be ready for these contingencies as well.

Planning for Your Child’s Future Abroad

Every parent wants to be prepared if and when their child expresses the desire to study abroad. With a bit of careful planning, you can manage  the huge expense involved  and help your child fulfil their dream.

Finance is the most crucial factor that will make overseas education possible. Here are a few pointers to get you going:

Start Early

Although children may start considering studying abroad from high school, you need to start saving well before that. A monthly systematic investment plan (SIP) is a clever way of accumulating wealth.

Review Investments

Many of your investments are likely to be in the volatile market space. Monitor the way your funds are performing at least once a year. You may need to move your money to better performing funds or increase your level of investment to ensure adequate wealth accumulation for your target amount.

Be Realistic about Costs

You can spend tens of thousands of rupees to lakhs in counselling sessions alone.

Consider the rate of inflation and cost of applications – the average college application costs about $75.00 (₹5,475.00 Approx.), and you will have to apply to about five to ten universities.

Currency fluctuation is also an important consideration. In 2010, the dollar was valued at about ₹45.00, and today it hovers around ₹73.00. So, bear in mind that you will spend a lot more than you had bargained for.

Stay Connected with Your Child Through Western Union

Western Union is a worldwide American financial services company that has been around since the 19th century, starting with telegraph services in the US. Today, it provides a variety of services but is best known for online money transfers. Through Western Union's international money transfer service, you can send money  to your child abroad in a quick and easy manner .

To register, you need to complete your profile details along with an e-KYC. Once you are registered and your profile is verified,  you can start to send money from India digitally to your child's overseas bank account . to meet their education purposes or it can be sent directly to an overseas college. And what’s more, all your information is absolutely secure and will not be shared with a third party.

Follow the tips provided above, and once your child is safely established abroad, be well-equipped to send them money on time through Western Union online money transfer services. Plan your child’s future well and feel the pride of fulfilling your responsibility.

This is a partnered post.
first published: Feb 22, 2021 01:28 pm