Financial checklist for your child’s overseas education
As Indian students increasingly pursue education abroad, parents must plan finances. A comprehensive checklist can help them support their children’s studies.
Authored by Richa Tripathi- Head of Wealth Management and Treasures at DBS Bank India.
Preparing for your child’s education overseas is both exciting and a significant financial milestone for parents. The number of Indian students pursuing higher education abroad has nearly doubled in six years and global education is an aspiration for many families. By ensuring a smooth and secure financial journey, parents can enable their children to focus on learning and thriving in a new environment.
To help you plan your child’s overseas education more effectively, here is a practical financial checklist designed to make the process easier.
Start early with planning and budgeting
Begin by creating a detailed budget that captures every foreseeable expense. This goes well beyond tuition fees and should include accommodation, daily living costs, travel, visa applications, health insurance, and a contingency fund for emergencies.
Research the average cost of living in your child’s chosen city and university. Factor in tuition payment schedules, accommodation deposits, utilities, food, transport, and personal expenses. Do not overlook one-off costs such as flights or visa applications, and make sure your child has adequate health insurance as required by the host country.
Consider setting up a separate savings account (SA) or fixed deposit (FD) dedicated to education expenses. Regular contributions and careful tracking can help you stay on target and manage large expenses more comfortably.
Set up an emergency fund
Unexpected events such as medical issues, travel disruptions, or sudden changes in living costs can arise at any time. Keep an emergency fund in an easily accessible account, such as a high-yield savings account, so that it can be used immediately if needed.
Aim to set aside at least three to six months of living expenses. Make sure your child knows how to access these funds and understands when to use them.
Simplify international fund transfers
Sending money overseas can sometimes involve hidden costs or delays. Choose solutions that make international transfers easy, fast, and transparent. Look for services that offer same-day, zero-fee remittances so that the full amount reaches your child without unnecessary deductions.
Get comprehensive student travel insurance
Living in a new country can bring unexpected challenges, from medical emergencies to lost baggage. Comprehensive student travel insurance is essential for peace of mind.
Ensure that the policy covers medical treatment, accidents, emergency evacuation, trip cancellations, and personal liability. Opt for plans with substantial coverage so that your child is financially protected from unforeseen events.
Explore education loan options
For many families, an education loan forms an important part of overseas study planning. Compare different loan options carefully, paying attention to interest rates, processing fees, and repayment terms.
Look for competitive rates and check for repayment holiday options that ease the burden during the study period. Always work with reputable financial institutions or their partners that specialise in education loans.
Choose smart spending options with zero forex markup cards
Foreign exchange mark-ups can quietly add up over time. A debit card with zero forex markup can help your child manage daily expenses more efficiently. It allows purchases and withdrawals abroad without extra currency conversion charges, leading to meaningful savings. Choose a card that is widely accepted internationally and offers advanced security features for fraud protection.
Open an overseas bank account in advance
Opening a local bank account can be time-consuming once your child arrives abroad. Many banks now offer services that allow students to open overseas accounts remotely before departure.
Having a local account ready means your child can access funds and make payments from day one, without the stress of dealing with banking formalities after arrival. Look for paperless, digital options that can be managed conveniently through a mobile app.
Leverage digital tools for tracking and managing expenses
Digital tools are a great option for managing finances. Choose financial partners that provide a unified digital platform or mobile app to track expenses, make transfers, and monitor insurance in real time. Such tools make it easier for both parents and students to stay informed, manage funds efficiently, and respond quickly to any financial needs.
Review finances regularly
Financial needs can evolve as your child settles into their new life. Review your plan regularly and set up periodic check-ins to discuss spending patterns, unexpected costs, or potential adjustments. Helping your child build financial discipline early will prepare them well for independent living and long-term money management.
By following this comprehensive financial checklist, parents can confidently navigate the complexities of overseas education, ensuring their child's financial well-being.
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