It’s always wise to have a part of your saving in $$ so that you are prepared no matter where your children opt to study. When it comes to NRI’s, a conversion from INR to USD today can wipe away years of ROI earned back home, think what could happen in 8, 10 or 13 years. It’s good to have savings back home, but we have seen that most expat children prefer to study in UK, Europe, US or Australia. In such an event having your savings in dollars will give you that additional flexibility to receive the amount in any country your children choose to study.
The high cost of living continues to erode your saving power as each day goes by, so the sooner you plan, the more you can save. It’s simply a discipline.
Points to be noted while planning for your children’s University education.
- Don’t look to short term while planning for education. Fees will be vastly different in 8 – 10 years’ time when you child reaches college. Inflation must be accounted.
- Don’t forget the cost of living, they can virtually double the yearly cost of fees.
- Don’t make assumptions about the sort of education path your children will choose. Be prepared for every eventuality, any country or currency.
Did you know?
- Proof of finance for the tuition fees and living expenses for the entire course may be
required for International student applications. Regulations are getting stricter every day.
- If saving in a weaker currency, any profit accumulated over years may be lost out on conversion, while repatriating money from your home country. Saving in a hard currency helps.
Start saving today
It’s not just the ‘Super Rich’ who can educate their children at premier universities,
Plan early and it is affordable. No matter how small, start now and build up as
your situation changes.
But, have you done your homework on the cost of education?
Here are some fee-figures for 4 years of college.
USA – $91,832 UK – £ 48,000 UAE – AED 192,308
Here’s how much you need to save every month to achieve the targeted fees @5% inflation/year – for each child.
10 years to college AED 3,953 AED 2,627 AED 2,323
8 years to college AED 4,925 AED 3,280 AED 2,902
5 years to college AED 7,021 AED 4,623 AED 4,092
*Assuming the saving grows at net 6% per annum