Are Indian parents jeopardising their financial futures to fund their children’s dreams of studying abroad? According to an alumnus of the Indian Institute of Management (IIM) Ahmedabad, many families are prioritising their kids’ foreign education at the expense of their retirement savings. With the skyrocketing costs of overseas education, parents are increasingly setting aside significant portions of their income for this purpose, said Aviral Bhatnagar, the IIM-A alumnus and founder of AJVC investment firm. Bhatnagar highlighted in a LinkedIn post that many families are allocating more than half of their retirement savings to support their children’s aspirations for foreign degrees.
According to Bhatnagar, most families in this country spend a large portion of their future savings on sending their children to foreign universities.
“Indians are spending more than 60% of their retirement savings on their child’s foreign education. 50L+ spent is a challenge for affluent Indians, who would make the top 0.5 per cent of the country. Not home buying, but education is the biggest worry. Education no more affordable," Bhatnagar, who had graduated from IIT Bombay, noted in his post.
His claims triggered a debate on LinkedIn, with many users dropping their opinions in the comment box. One of them said, “While foreign education is undoubtedly a financial strain, the bigger issue lies in our perception of its value. The issue isn’t just about affordability, but the return on investment—something that used to be a crucial factor in evaluating education back in the day."
Another person believes Indians are quite hyped with “getting a lavished degree" and that’s the reason why “spending more than half of one’s Net worth has become a norm." According to the user, the majority of the students visiting abroad are “driven by a fascination with foreign lands and western lifestyle."
One user reckons the cost of studying in a private institution in India is as high as foreign universities. The individual further claimed that students who are going abroad, mostly “fail to get admission to their preferred degrees" in their homeland.
The LinkedIn post has garnered more than 1,500 reactions since being shared on the platform.
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