When we were younger – the time when we were deciding where to study – most of us would not even think of studying abroad, unless we got a scholarship. Make no mistake – my dad could have afforded and would have paid for my education in the US. I got an offer for doing CA in London. England and Wales is the origin of the CA profession.
I did not think it was going to be helpful – not even sure if that was right or wrong.
However, this post is not about me. It is about you.
How much should you spend on your children’s education? Suppose you have estimated that you need Rs. 6 crores for your RETIREMENT. You are now 53 years of age. You have about Rs. 2 crores and 6 years of working (and you also expect your Rs. 2 crores to double in this period), so you think you are comfortable. However, suddenly your kid tells you he/she has got admission in an European college – it costs Rs. 90L for the education. Your second kid is also watching.
What will you do? how does a person decide how much to spend on a kid’s education? who should decide that?
what if AT the same time your father is stuck with an illness requiring a lot of your private resources? (assuming he was not insured)…
How much will you spend on your kids wedding?
Assuming that you are willing to borrow (against your only asset – aka residential house) for funding the education and marriage of your children are you willing to borrow a crippling 80L? or say Rs. 200 lakhs for your second kid?
I have strong views, and I am lucky that my daughter is doing CA and I do not have to grapple with this question. I know people who have struggled with this question….expecting a reply from you in the comments column.
I am sure this will not happen to you….
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