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Making Education Techno-Friendly
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A survey from 2018 tells us that, on average, parents across the world spend Rs 29 lakh for the education of their child up to undergraduate studies. This number is Rs 12.25 lakh for Indian parents and is the highest for Hong Kong at Rs 86 lakh. These numbers give us the idea that there are millions of parents who recognise the value of education and are willing to spend even larger sums for better education.

Education is an invaluable asset that everyone should be entitled to. While there is no single way to gain an education, going to schools and colleges is the basic step and this step does require a monetary cost. So, let us consider education expenses as investment options and see if it is a good investment.

 

ROI

Most of the businesses today offer you a Return-on-Investment of 10-20% and these are good numbers. Most of the other investment options like FD and mutual funds give you ROI of 4-22%, upper limits of this range being quite rare. Education is a long term investment for most, but as soon as your ward is done with studies and starts working he starts giving you these normal returns, proving it’s not a bad investment. But the best part is, the ROI grows multiple folds as the experience increases and the ROI can be super-normal.

 

Future Value

An asset’s profitability is judged by its future value. For example, if you are buying stocks of a company, you are not looking for the dividends but for the increased stock prices after 5 or 10 years. Education is a similar asset as its true value is revealed as its future value in terms of the living that your ward is going to earn.

 

Betterment of World

We all would agree that education is the key tool for making the world a better place. Now, let us see how this can be considered as an investment. We have to understand that the world is for us and by us, so whenever we give something good we return something better. Let’s see that finance wise, a better world would mean a better lifestyle with decreased inflation, which in simple words means that in future your ward’s income to expense ratio will be increased. So, more things at a smaller per cent of your income.

 

Peace of Mind

We humans do things for the happiness and peace of mind. As we have understood that better education shall be bringing better jobs and more buying power, which means that one can enjoy more and stress less about the chores of day to day to life. With education, innovation will rise and that, in turn, will bring peace to us.

 

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