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5 Future Challenges in Higher Education & How to Prepare for them Financially?

5 Future Challenges in Higher Education & How to Prepare for them Financially?

5 Future Challenges in Higher Education & How to Prepare for them

India’s higher education system is one of the world’s largest education systems in terms of students. A lot of new parents or couple planning for a kid are considering their finances ahead of time so that they do not have to face financial obstacles later. An advanced approach of planning your finances will help you stay on track while enabling you to meet your life goals smoothly and as planned.

The rapid expansion of education system in India has brought several significant issues along with the access to higher education in the country and the associated cost.

Let us delve deeper and understand the pressing challenges of higher education system in India.

Five Challenges in Higher Education

1. Online Education System

During and post pandemic a lot of education systems have started imparting digital education. It is now quite evident that digital education is going to play a major role even in the higher education of your kids.

In addition to that, educational institutions have been introducing online courses to help students learn skills that are will shape their future. So, apart from paying the tuition fee, parents may also expect additional expenses for the courses their kids may wish to enrol in.

2. Education as a Continuous Long-Term Engagement

For a large segment of professionals, education is the pillar as they believe in continuous learning and development. This means, for the first few years of professional life, external financial support may be important for the child.

While continuous education is already indispensable for few professions like medical services, engineering and financial services, other professions are fast catching up.

3. Economic Difficulties

This is one of the most common challenges of the higher education system. A lot of people are unable to send their kids to better colleges and hence, a lot of good students are missing out on the opportunities. A lack of education fund might also be the reason of an economic difficulty.

4. Less Number of Premier Institutions

There are a lot of premier institutions in India, however, the number is still less considering the huge audience size. Also, not every student may want to stay back in India for their future studies. Some of the students may expect to go abroad and then pursue their future.

5. No Practical Based Training

You cannot find an education institute that is “one size fits all”. Difference institutes have different teaching system. Once institute may all the focus on visual learning, some may focus on practical learning. This could be challenging for the students as well as the parents for finding the right educational institute for their kids.

How to Prepare for the Higher Education of your Child?

Preparing for the higher education of your child is not an easy task. Even great financial resources are not a guarantee of success. To ensure that your child has a secured future, you must be equipped financially.

Listed below are three (3) ways to prepare for the higher education of your child:

1. Set a Corpus

Before you start investing in a financial product for your child, set a fund amount. Work out a ballpark figure that you have in your mind and then buy financial product as per the goal that you have set. It becomes easier if you have a rough estimation in your mind. Plan your investments accordingly.

2. Buy a Savings Plan or Child Insurance Plan

You should plan for your child’s future education with a savings plan or a child insurance plan. These plans offer a life cover along with a range of other benefits that helps you plan a seamless future of your child. The best thing about buying a life insurance cum savings plan is the avenue to build your desired corpus.

For example, Canara HSBC Life Insurance iSelect Guaranteed Future is a life insurance cum savings plan that offers life cover and guaranteed maturity benefits. The plan also offers tax benefits up to Rs.46,800 under the prevailing Income Tax Act.

3. Keep Increasing the Desired Fund Value

With the increase in inflation every passing year, it becomes essential that you start saving for your child as soon as possible. This will give you more time to save as your child will be younger. With every passing year, the needs of your child will increase. To maintain a steady balance in your finances, keep increasing the amount you put into the investment fund whenever possible.

Despite all the preparation, information and action, you need to ensure that fund you are building for your child will be enough for their future needs. Starting the investment early is the key to achieving your goals on time.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.

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