How to plan a budget for pursuing studies abroad

An ever-increasing number of students are choosing to pursue study outside of India. More than 6.46 lakh Indian students went abroad for higher education in 2022 - that’s at least 10 per cent higher than 2019. However, with the Indian rupee depreciating against the dollar and inflation persistently high, budgeting and securing finances has assumed even greater importance. Let us look at key expenses involved in pursuing an education overseas and what steps could be taken early in life to ensure financial support for such endeavours. Choosing a country and university that fulfils one’s aspirations Depending on the course or field of study, selecting a country and university that offers the best value should be the first step for any candidate. Some countries in Southeast Asia, Eastern Europe and even South America have a significantly lower cost of living, especially in comparison with more popular nations like the USA and UK. That said, it is important to research on the best universities that offer the desired program and then prioritize the top options depending on factors such as the base currency and the resultant expenses that will be involved during the length of the study program. Performing a basic cost analysis and comparing it with the range of experiences that are on offer should help in narrowing down your selection. Calculating tuition fees, study expenses, accommodation and other daily expenses In addition to the basic tuition fees, most educational institutions abroad mention supplementary academic programs or courses that are highly recommended for international students. These could include language courses, field studies and even subscriptions for educational material, adding to the overall cost of an education program. Students will also need to budget for accommodation and other living expenses including food, transport and health insurance and other associated visa requirements. If housing is not included in the study abroad program, checking alternative options like student housing partners and homestays with the program advisor should be explored in advance. Many student visas also place restrictions on work, so this will impact earning capacity to cover expenses. It is crucial that all course details are scrutinized to arrive at a more accurate estimate of academic expenses involved. Since these fees and expenses would be incurred in foreign currencies such as the US Dollar (USD), British Pound (GBP) or Euro (EUR), it would be highly recommended to assume an additional buffer to account for currency fluctuations. Applying for scholarships, internships or grants early to reduce financial outgo Inadvertently, many students miss out on scholarships, grants and even paid internship opportunities (and whether your student visa permits these) due to a lack of advance planning. It is therefore vital to consult with your local course counsellor and study program advisor to understand the extent of financial aid on offer for international students. Even university stipends, although of smaller amounts, can be of great help to reduce the overall financial burden and should be explored thoroughly before leaving for your study abroad program. Preparing for rising education costs with Child Savings Plans Living costs continue to climb around the world, and the higher education sector is not immune to these changes. The cost of a tertiary qualification today is likely to increase significantly over time, so parents of a newborn child today would need to factor this into their budget, along with other expenses, like marriage. Moreover, with the average cost of an undergraduate program in a country like the USA already increasingly significantly since the onset of the COVID-19 pandemic, it comes as little surprise that most parents worry about how they would meet the rising costs of a study program abroad in a few years from now. This has a further impact on how they would plan their investments towards meeting these future expenses, with the majority preferring to invest in guarantee savings plans, as compared to tax-saving or high-growth instruments. In such scenarios, Child Savings Plan may offer the ideal stability for parents looking to secure their child’s future, with its regular payout structure post completion of the premium payment term helping them meet education expenses for the remainder of the policy term. Moreover, with additional benefits like guaranteed additions to the annualised premiums paid, premium waiver in case of death of the policy holder, other benefits like increasing the survival benefit, and the option to choose additional protection against accidental total permanent disability (ATPD), these Child Savings Plans can financially prepare your child to reach their potential. Life can take many twists and turns, but adequate planning and the added financial protection offered by such insurance products can help parents secure their children’s dream of studying abroad without unnecessary hassles or stress. By virtue of the flexibility provided to save with a unique payout structure, a Child Savings Plan should therefore be an important precursor to planning and securing an ample budget for study abroad programs in the future. The author is Chief Financial Officer, PNB MetLife. Views are personal. 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