How to Preparing Funds For a Child's education abroad

Education Fund is one of the things that parents must prepare. Whichever school the child chooses, we must start thinking about their education funds. The way to prepare it is somewhat different from preparing high school funds. Before starting, make a plan in advance about whether the child will study in the country or abroad. It's okay to dream of studying your child abroad, I hope it will come true!

Here are the steps How to Preparing funds for a child's education abroad :

1. Understand the fee structure at the university you want to attend

Each university has a different fee structure, some have a single semester or package system, and some are paid per credit taken. Therefore, it is mandatory to conduct research from now on on the needs of children's education funds. There is also a permanent resident system in the country. Usually, the education fund will be cheaper.

2. Calculating the need for funds

Preparing funds for a child's education abroad is not only a matter of school fees but also other needs such as accommodation, living expenses, cultural differences, and return costs. In addition, an important thing that must also be considered is whether the child will live in a dormitory or own an apartment, or share an apartment.

3. Investment Plan

Plan an investments according to estimated needs plus an emergency fund.

4. Choose investment instruments

If the child who is going to college is still over 10 years, then use stock mutual funds. If it goes directly to stocks, this will be very risky. But if you understand, you can invest in stocks, but understand the risks. If your child is going to college in 5 years, just collect the exchange rate or the currency of the destination country so that the difference in inflation isn't too big.

5. Evaluation

Whatever our financial plans, it can be revised and updated according to current conditions. For example, by getting a bonus or successfully paying off a debt, you can allocate all the funds to a child's education fund.

6. Understand the source of funds to send children abroad

The main source of funding is of course the income of the parents themselves. However, don't create a new sandwich generation just to pay for your child's school fees. So, as much as possible, children's school fees are only 10-15% of our monthly income so that we still have investment funds for our retirement.

Then there are also scholarships. If indeed the child can get scholarship funds, then the funds that have been prepared can be allocated to others. Apart from that, you can also ask for sponsors from companies or hospitals if you want to become a medical worker. For the scholarships themselves, some are covered in full, some are only for school fees, and some are only partially. So, understand it!