18 Aug 2023
Education helps you make a well-formed mind!
Millions of Indians migrate to developed countries like the United Kingdom in a bid to find better employment opportunities to earn a living and send money to India from UK to offer financial support to their families back home.
A report by NDTV revealed that the Indian diaspora is the largest worldwide, with over 18 million migrants spread across different countries in the world. They have been sending remittances back home and play a critical role in boosting the country’s economy, as remittances to developing countries are a financial lifeline.
Indian Union Finance Minister Nirmala Sitharaman said that the Indian diaspora sent $100 billion in inward remittances in 2022, according to a report by NDTV. It helped India retain its position as the world’s top recipient of remittances.
Do you know what is one of the critical reasons that prompted such a huge migration from India?
If you think it is only due to earning a living, you might have to think again. Several factors are at play.
One of the critical factors is to save enough money for your children’s education. Because whatever meagre resources you have in your native country are exhausted in fulfilling the basic needs of life, leaving little room for affording education.
But do not worry!
This blog will guide you on how to save for your children’s education and also shed light on the key benefits of seeking a high-quality education.
All Indian migrants do not necessarily earn a reasonable income. The quantum of money for each migrant varies, which they send back home for financial aid through a money transfer from UK to India.
Let’s face it.
Even in foreign lands, most migrants can manage to earn, which is barely enough to fulfil the essentials of life just normally. Therefore, making savings becomes essential coupled with smart spending.
Here’s how you can save for your children’s college fund.
It is not about starting to save by a big margin. Do not feel defeated nor get overwhelmed. Whatever the purpose of savings, it is – has always been – a slow and steady process. So, start by saving a small amount. But make sure to start as early as possible and be consistent.
The best way to save money is to open a different account and create a mechanism that automatically saves money into it from your primary account. You can open a separate savings account for this purpose because if you think you can save money with one primary account, which normally is a checking account, then you are mistaken.
Technology has squeezed distances. If you are earning somewhere in person, technology allows you to earn online through different means. Therefore, it is essential to look for another income stream and dedicate its earnings to the fund you have created for your children’s education.
It is one of the most important tips. When you are alone, the temptation to spend lavishly in a foreign land is hard to resist. You will likely get carried away by how others spend money. This can disbalance your finance.
Try to spend each penny wisely and with care. And the money thus saved can be diverted to your children’s educational fund.
In this regard, learning How To Minimise Your Personal Expenses As An Expatriate is essential.
Although your children may have to go a long way to win a scholarship, plenty of which international educational institutions offer, you should keep an eye on these study programmes. Prepare your children for these accordingly and also make arrangements in advance to get these.
It may not be directly connected with how you save money but fees and currency exchange rates are two areas where a money transfer service provider can throw your financial management into disequilibrium. But exceptions are there that can help you in this regard. For example, ACE Money Transfer allows Indian migrants to send money with zero fees and get live and market-competitive exchange rates from 28 countries, including the UK, Europe, Canada, Australia, and Switzerland, till the end of 2023.
This can help you in boosting your savings abroad.
Let’s now look at some of the benefits of acquiring quality education.
The list of benefits is long and cannot be summarised. But a few prime benefits are explained below.
Unlike conventional education, a quality education allows you to access several opportunities. It is essential given that developed economies are pretty robust and expansive, offering several jobs at any given point in time.
An educated person can benefit a country’s economy by adding value to it. For example, acquiring a degree from an international educational institution will give you unique ideas, applying which in your home country can benefit it immensely.
Education opens your horizons and helps you get a better job. And with a better job, your income is likely to increase. It can lift you and your family out of poverty, for which purpose you leave your family behind and migrate in the first place.
Education breeds new ideas, and ideas have the potential to change destiny. It is one of the reasons why it is said that the pen is mightier than the sword. Because through education, you can instil in people what you cannot otherwise.
These are some of the benefits of acquiring a quality education.
One of the primary advantages you can get if you send money to India online from UK with ACE Money Transfer is that the firm will help you save and send more by charging you a low fee and offering live and market-competitive exchange rates. Additionally, you will get safety, speed, wide service access and much more from just one stop.
Frequently Asked Questions (FAQs)
What is the best way to start saving for my children’s education?
You can save for your child’s education in multiple ways, including regularly contributing to a savings account, investing in a college savings fund, and opening a 529 plan which is a tax-effective savings plan to bear qualified educational expenses like books, supplies, fees, and tuition.
How much should be saved for my child’s education?
This amount is subject to your child’s academic goals, college expenses, and your financial health. However, a good start would be to start saving at the earliest and save at least $200 per child per month.
What are the tips to save money for my child’s education?
The following tips are beneficial:
Start early so that your money and savings grow with time
Contribute regularly to the savings account
Circulate your savings through investments
Choose some tax-advantages savings plans
Keep an eye on grants and scholarships
What are some of the benefits of a good education?
A good education helps you in the following few ways:
It can help you earn a relatively higher income
It helps you get access to multiple opportunities
You get better job satisfaction
It helps you with your social mobility and social connections
What are the challenges in saving for my child’s education?
Your financial health, fluctuating expenses of educational institutions, and rapidly changing economies can affect your savings and pose a challenge.
Resources
(At 18 Million, India Has The World's Largest Expatriates Population (ndtv.com)
($100 Billion Received In Remittances From NRIs In 2022: Nirmala Sitharaman (ndtv.com)
