Case Study: How the US Dollar Global Education Saving Plan Helped an NRI Family Fund Their Child’s Masters in North America
As parents, there’s nothing more rewarding than watching your child’s dreams come to life. For NRIs, those dreams often include sending their children abroad for higher education, especially to countries like the US or Canada. However, these dreams come with a hefty price tag. That’s where HDFC Life International’s US Dollar Global Education Saving Plan comes into play.
In this blog, we’ll walk you through the journey of an NRI family who successfully funded their child’s Master’s degree in North America using the US Dollar Global Education Saving Plan. This case study is a great example of how proactive planning can turn aspirations into reality.
Meet the Mehta’s: An NRI Family with Big Educational Dreams
The Mehta family, originally from India, moved to Dubai a decade ago. Like many NRIs, they had big dreams for their son, Rohan. From a young age, Rohan was passionate about technology, and his ambition was to pursue a Master’s degree in Computer Science from a top-tier university in North America.
As Rohan approached the final years of his undergraduate degree, his parents began to realize the staggering costs of a postgraduate education abroad. With tuition fees alone averaging between $30,000 to $60,000 per year for a Master’s program, coupled with living expenses, the financial burden became apparent.
The Mehta Family’s Financial Concerns
Despite being a financially secure family, the Mehta’s were worried about how to fund such a large expense without putting their retirement savings at risk. The fear of currency fluctuations added to their concerns. Given the volatility of the Indian Rupee against the US Dollar, they knew that saving in local currency wouldn’t guarantee the purchasing power needed to cover the future costs of education abroad.
Discovering the US Dollar Global Education Saving Plan
During a financial planning session with their advisor, the Mehta’s were introduced to
HDFC Life International’s US Dollar Global Education Saving Plan. It seemed like the perfect solution to their concerns:
Savings in US Dollars: This meant that they could secure their savings in a stable global currency, protecting themselves from currency depreciation.
Flexibility: The plan allowed them to make regular contributions that fit their financial situation, while also benefiting from the growth of their savings over time.
Tax-Free Withdrawals: Although not a key focus in this case, they were attracted to the plan’s features that allowed them to withdraw funds without unnecessary complications.
How They Built Their Education Fund
The Mehta’s started contributing to the plan when Rohan was 18 years old and in his first year of undergraduate studies. With a clear timeline of four years until he would apply for his Master’s, they set a goal of accumulating $100,000. This would cover Rohan’s tuition fees, living expenses, and additional costs like books, health insurance, and travel.
They opted for a monthly contribution plan that worked within their budget, and thanks to the flexibility of the US Dollar Global Education Saving Plan, they could increase their contributions during periods when their income was higher. By spreading their contributions over the years, they avoided the stress of having to come up with a lump sum at the last minute.
The Benefits of Early Planning
The decision to start saving early allowed the Mehta’s to take full advantage of compounding interest. By the time Rohan was ready to pursue his Master’s, the plan had accumulated significant value, allowing them to comfortably cover his education expenses.
More importantly, saving in US dollars gave them peace of mind. Over the years, the Indian Rupee experienced fluctuations, but since their savings were in US dollars, they didn’t have to worry about how these changes would impact their education fund. The value of their savings remained intact, and they could focus on other aspects of Rohan’s education journey.
Fast Forward to Today: Rohan’s Success Story
Rohan is now in his second year of a Master’s program at a prestigious university in North America. Thanks to his parents' foresight and the financial planning provided by HDFC Life International, he can fully focus on his studies without worrying about financial constraints.
The Mehta’s, on the other hand, are relieved that their savings plan worked out as intended. Not only did they successfully fund Rohan’s education, but they did so without having to tap into their retirement savings or take on any debt.
Key Takeaways for NRI Parents
Start Early: The earlier you begin saving, the easier it will be to accumulate the funds needed for your child’s education. Even small monthly contributions can grow significantly over time thanks to the power of compounding.
Save in a Stable Currency: The value of the Indian Rupee can fluctuate greatly against the US Dollar. By saving in US dollars, you protect yourself from these fluctuations and ensure that your savings retain their purchasing power.
Flexible Contributions: Life is unpredictable. Choose a savings plan like the US Dollar Global Education Saving Plan that allows you to adjust your contributions based on your financial situation at any given time.
Seek Expert Guidance: Financial planning for your child’s education is a big decision. Consult with professionals to understand your options and choose the right plan for your family’s needs.
Conclusion: Take Action Today
The Mehta’s’ story is a testament to the importance of early and strategic financial planning. If you’re an NRI parent with dreams of sending your child to study abroad, now is the time to act. The US Dollar Global Education Saving Plan from HDFC Life International can help you secure your child’s future while giving you peace of mind along the way.
Don’t wait for tomorrow—start planning today and give your child the gift of education without the stress of financial burdens.
To get in touch with HDFC Life International and to learn more about their services, Click Here
Disclaimer: HDFC International Life & Re, IFSC Branch (HDFC Life International)
The views expressed in this blog are the express opinions, views, and perspectives of Benefits for Expats Inc., Canada. They do not in any manner represent or/and reflect the opinions, views, and perspectives of HDFC International Life and Re Company Limited, its affiliates, or any related entities. HDFC International Life and Re Company Limited does not endorse or take responsibility for the content, ideas, or point of view presented in this blog and accepts no liability (whether in tort or contract or otherwise) whatsoever to any natural person/legal person for any damage or loss of any nature arising from or as a result of reliance on any of the contents of this blog. Readers are encouraged to seek independent advice and make their own judgments on any matters discussed in this blog.
Benefits4Expats.com and Benefits for Expats Inc., Canada are involved as digital marketing partners for HDFC International Life & Re, IFSC Branch (HDFC Life International) GIFT City. The material is meant solely for education and awareness purposes and not meant for solicitation in any manner. The information provided herein is not intended for distribution to, dissemination to, or use by, any natural person or legal entity in any jurisdiction or country where such distribution or use would be contrary to the applicable regulations and laws.
Disclaimer: Benefits for Expats Inc.
The information provided in this blog is intended for general informational purposes only. Benefits for Expats Inc. is committed to delivering accurate and up-to-date content, but we do not guarantee the completeness or accuracy of the information.
コメント