top of page

How to create Foreign education Fund for your Child

Have you travelled to any Foreign Country in last 10 yrs ? Have you Visited neighbor countries for some marriage or functions ? Has there been occasion's when you heard about Your friend's Child going to USA/ UK or Australia for higher education ! I am sure you must have experienced at least one situation mentioned above . The reason i have asked you all this is to show that how the world is getting smaller and easy to access . In our Younger days travelling outside state was a big thing to do , But now we are seeing younger kids traveling , roaming around the world so easily .

As they are getting exposed to western cultures , their ambition of learning abroad is increasing . More and more students wishes to attend foreign universities . The start up Breed Grooming in the silicon valley has become inspirations to the younger budding entrepreneur's across world and India . Such new generations are having Foresights , Vision and aspirations to recreate the world . We have seen many examples of such new startups creating a big impacts on the world and life .

But when we see things from indian mentality , every parent will get worried about the cost of foreign education. Many people i have seen have taken loans to fund their kids abroad education even at older age . Some of them had spend their own retirement fund to fulfil their kids dreams , Making their life riskier in retirements . You can check around your self to find such parents , Who are facing challenges in fulfilling their daily needs after spending their retirement kitty for kids education . can this be avoided ! Yes surely if you plan things well and in time it can be .

Many parents ask me about how they can create plan for foreign education fund -

Let me share you the path for same -

As example we consider here the cost of MBBS in Us As $200,000 to $300,000 Today !

Your child's age as - 2 Yrs

So the actual fund may be required 13 to 15 yrs later , Now you need to calculate the future fund amount ! the regular inflation is said to be 6-7 % but in case of education it can widely vary , still for this example we consider it as very moderate , i.e 10 %

so what will be the required fund value after 15 yrs -

it will be approx 12 lakh $ , after seeing this huge figure many of you might get more worried ! its natural but that will not help ,

Now , we know how much money we need to have after 15 yrs , How that can be created ?

By putting money in your JAR ! PIGGY BANK ! SAVING ACCOUNT ! - No it will not help to that extents , You need to find the ways which can help your money grow with the rate of the inflation or more than it so that you can reach your goal , Check the below figures -

as per the above calculations if you are able to save & invest 25000 $ Per year and able to get the 15 % returns on your investments then you will be able to create almost 12,00,000 $ FUND as required .

You can even invest 2000 $ / month to reach your set figure . So in order to plan for your kids foreign education you need to follow below steps --

1 - Current Cost or the value of the required amount

2 - Future value of the current cost

3 - Payment ( yearly / monthly ) required to create the fund

4 - Ensure consistency 5 - Increase the returns to speedup the fund creation

Here i have taken 15 % returns , if you can find the way to earn more than this then it will make your goal easier , while doing this you also need to ensure the safety of the portfolio by selecting right asset combinations . For this you can consider -

Direct equity

Foreign Equity*

Mutual funds


High Coupon Bonds*


Real estates*


These are the suggested options , it can be variable based on the point of its consideration .

As the above calculation shows , if you are able to get average 10 % extra returns during the specified period then our Investment amount required gets reduced by 52 % and its so easy to achieve your goals , You can get it surely !

But its important to have the Right basket . These are your Tools to get what you want . One should also have adequate majors to avoid possible leakages or Financial impacts because of the unexpected events . In such case taking Proper protection will surely of great help !

Pls do take in to consideration the Risk and rewards for the chosen asset classes based on your financial profile and Goals.

You can share your valuable comments if any , thanks

1 Comment

digital flattrade
digital flattrade
Feb 27, 2023 is India's first zero brokerage platform, Enjoy unlimited orders in Equity delivery, Intraday, Futures and Options, Commodities, and Currency with no brokerage. Up to 5x leverage on Intraday Trading and 2.5X leverage through Margin Trading Funding. No AMC, No Demat account charges. No charge on Algo trading - Free API.

bottom of page