Parents – Its time for you to do your homework

In today’s world, dreams are possible to achieve, by everyone, with  proper planning and execution. The current generation of kids know that the sky is within their grasp. As a result, aspirations of making a global career is always high. Students strive hard to crack competitive exams like IIT JEE, GRE, GATE, CAT, XAT and the likes to lauch themselves in a career path that would make their dreams and aspirations possible. But such asipirations come with a cost, the burden of financial implications.

Let us play with the numbers to get a clearer figure. So the first stepping stone for an international standard career is often percieved as a BTech from a premier institution. Parents dream of at and the children aspire for it. Every 14 year old starts to aspire for a career starting in the IITs. But the cost of doing a graduation in IITs and allied institutions of excellence goes as high as 50,000 to 100,000 rupees per semester. Over a period of 4 years, each of which consists of 2 semesters, the numbers are easy to calculate. On top of that, a student would also want to do a masters, maybe a MBA. As of date, the cost of doing an MBA in current days across any of the older IIMs (government Institute with subsidized fee structure) is around 15 lakhs rupees. And every 2-3 years, these institutes are forced to revise ther fees to meet their academic standards. An MBA from Europe or USA can go well over 50 lakhs rupees for the aspirants of a global career.

So where does this leave the students and their parents? Students become overtly dependent on banks to finance their aspirations. They start off their career with a bank loan which needs them to pay a substantially large EMI after the end of each month, as they toil to meet their dream company’s job deliverables. Barely enough is left to maintain a decent life standard after deducting this EMI. Practically no money is left to celebrate the finer things in life. Only after paying off the educational loans, he or she can look forward to a further higher education or focus on financial savings for future aspirations like a car or a home for his/her family.

Now as parents if you want to avoid this scenario, you need to plan in advance. Investments need to be made systematically and in time, so that your childrens aspirations can be met with without over burdening them with lakhs of rupees of EMI of loans when they complete their education. Its time for you to do your homework, so that our children’s future will be in financially safer hands. The Do your Homework campaign is meant for all those parents who would want a hassle free bright future for their children. Its a web tool to calculate how much one is really geared to protect the future of their children’s long term plan for a high quality education. It gives different flexibility, for example, depending on how old is your child and based on that how much he or she may need, when the education needs start kicking in. The online calculator provides a detailed understanding to the parents who care about the emotional and financial aspects of the needs of a child, based on detailes like his / her career aspirations ands age. It helps you to prepare your world of today so that you can ensure the world of your child does not crash in the future.

 

Author: Kar

Dr. Kar is in the Information Systems & Management area in one of the top QS Ranked universities of Asia/world. He has extensive experience in teaching, training, consultancy and research in Indian Institutes. He has published over 75 high impact research papers with hundreds of citations as per Google Scholar. He has also authored/edited a number of books. He is the Editor and Founder of Business Fundas. Note: The articles authored in this blog are his personal views and does not reflect that of his affiliations.