Recently, we had a big change in our lives; our son left home for higher education. A new chapter begins for him and for us. The process began six months ago when he started applying for colleges abroad. I realised that when we talk about financial planning for education, we only consider tuition and accommodation expenses, however, there are many other expenses that we need to prepare for. I am listing them here based on my experience to help you plan for it.

First, if you are going through an education counselor, you should start with their fees. Counselors charge between Rs. 50,000 and Rs. 4 lacs, depending on their reputation. Next comes the acceptance of your admission. A deposit amount (non-refundable) must be kept with the college to block your seat. There is a possibility that you may get a better college, so be prepared to forfeit the deposit if you choose not to go ahead with the earlier college admission.

Once college admission has been completed, you should focus on accommodation. You must keep aside some amount to pay a deposit for the accommodation. Getting accommodation of your choice is not easy, so you must move quickly.

You must also pay the TCS (Tax Collected at Source) for foreign remittances above Rs. 7 lakhs. TCS charges of 0.5% are applicable if funds are provided via a loan. 5% if self-funded. Of course, you can claim a TCS refund when filing your return.

Try to buy airline tickets as soon as you have paid for college advance because the tickets will become expensive as the dates come closer.

If you are planning to take a loan, first check out the Cibil Score. Ensuring a healthy score of 700 and above. Ensure that you make timely loan payments and that the payments are updated on the Cibil site.

All the necessary documents that are asked by the bank must be kept ready for the loan application, especially property documents (if that is the collateral).

Next, consider the cost of the visa fee. If you are planning to go through an agent, the agent’s fees as well should also be accounted for.

Health insurance charges also have to be paid in advance. This is in the case of the UK; I am sure there are similar charges for other countries as well.

Next is shopping—a huge expense. It starts with suitcases, clothes, shoes, jackets, basic utensils, food, and a laptop (if you need a new one), and keep aside some money for this as well.

Once the child goes to college, there will be room set-up expenses like bed linen (pillow, mattress, duvet, etc.), storage and cleaning materials, apart from food, toiletries, clothes (if required), and a budget for this as well. Giving them a credit card with a limit could be useful for monitoring their expenses.

Coming to the monthly budget, in the first month, they probably will be eating out more often until they figure out their routine, so their expenses will be high. By the second month, you realize the expenses for food, travel, laundry, and other things. Keep a minimum of three months’ expenses in their bank account so that emergencies are taken care of. Foreign exchange volatility can impact your budget, so provide some extra money for it.

Finally, it is of prime importance to teach students how to manage money judiciously.

P. S I have not put down the costs because it depends from course, college, lifestyle etc.