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Hello, Harvard! How much should you save for your child to study abroad?

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Premium Content Harvard Education

Hello, Harvard! How much should you save for your child to study abroad?

Hello, Harvard! How much should you save for your child to study abroad?

No sooner than your child is born, family and friends will start talking about whether your little one is going to study overseas to be a doctor, be educated at Harvard, or study economics at Oxford. So how much do you have to save now to be able to afford your child’s university education?

According to the recent Emerging Affluent Study 2018 across 11 countries, 43% of people surveyed rank their children’s education as one of their top three financial goals But with sky-rocketing costs — especially for overseas education — how many can really achieve these goals?

What are the costs of tertiary education?
In no time at all, 18 years will have passed and you will be waving your children goodbye as they leave for university. Whether they decide to study overseas in Singapore, Australia, Hong Kong, the UK or the US, here are the tuition costs you could be looking at by today’s standards.

Annual tuition fees

University in Singapore    ₹17.6 lakhs   –    ₹23.1 lakhs
University in Australia    ₹20.5 lakhs   –    ₹27.2 lakhs
University in Hong Kong    ₹12.7 lakhs   –    ₹15.1 lakhs
University in UK    ₹19.1 lakhs   –    ₹25 lakhs
University in US    ₹33.7 lakhs   –   ₹40 lakhs

Of course, like everything else, costs are on the rise and if you are looking at university fees 20 years from now, if your child decides to study in Singapore, a year’s tuition is likely to cost around ₹46.2 lakhs¹ a year.

Reference:
¹ Dollars and sense article on unviersity fee: https://dollarsandsense.sg/how-much-do-you-need-to-pay-for-your-childs-university-fees-in-20-years

 

Costs don’t stop at tuition fees

It’s worth remembering that on top of university tuition fees, you will have to find a way of funding books, transport, food and accommodation. On-campus living, for example, can be expensive, costing around ₹21 lakhs  a year in the US. Other incidentals like flights home and paying to store belongings between the end of one university year and the next can all add up.

Know more, about our wealth solutions.

Don’t delay, start today

But the good news is that the sooner you start, the easier it is. If you start investing monthly when your child is 5 instead of waiting until he is 10 years old, you could have more than double the amount by the time he goes to university.

Know more, to plan your child’s future.

Regular savings make it more affordable

Reaching what might seem a daunting target is made much easier if it’s through small regular amounts, which can be done through Systematic Investment Plans (SIPs) in mutual funds.

Let’s look at Pooja Sharma , 35, a successful business manager with a two-year-old son. She has decided it’s the right time to invest in his education, and will put aside ₹10,000 a month in an SIP for the next 16 years to pay for his education.

By the time Pooja’ s son reaches his 18th birthday, his mum will have invested₹19.2 lakhs . With a projected rate of return of 10% per year, she stands to have ₹47.4 lakhs in his education fund.

Investing over the long term means that Pooja will be able to ride out any losses, and her investment plus compound interest should meet all her son’s education

Know more about our Systematic Investment plans

Like Pooja, you can discuss with our Premium RMs, how much you want to invest each month and the type of investments you would like to explore.

Want to learn more? Click2Chat with Standard Chartered Premium Banking’s team of financial experts. We are here to help.

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This article is brought to you by Standard Chartered Bank India. All information provided is for informational purposes only and is not intended to be construed as advice or an offer for any product or service. Returns wherever mentioned are illustrative only. Standard Chartered is not liable for any informational errors, incompleteness, delays, or for any actions taken in reliance on information contained herein.

Standard Chartered Bank does not provide any investment advisory services under the wealth proposition. Standard Chartered Bank in its capacity of a distributor of mutual funds or while referring any other third party financial products may offer advice which is incidental to its activity of distribution/referral. Standard Chartered Bank will not be charging any fee/consideration for such advice and such advice should not be construed as ‘Investment Advice’ as defined in the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 or otherwise.

Mutual Fund Investments are subject to market risk. Read scheme related documents carefully prior to investing. Past performance is not indicative of future returns