Parental guidance is essential for children to carve their academic and career success

Education has been a bedrock of Indian culture, with a longstanding tradition of unwavering parental support. From meticulously planning educational journeys to offering timely advice, parents have played an integral role in shaping their children’s educational path.Prime Minister Narendra Modi highlightedthe significance of this parental role during the 8th Pariksha Pe Charcha session. His emphasis resonated with the broader theme of nurturing resilience through familial support, acknowledging that the educational journey is not a solitary one but a collective endeavour.To navigate this educational landscape effectively, parents can adopt practical strategies.

One particular area deserving attention is the thoughtful consideration of education loans. Beyond being a financial tool, these loans emerge as a powerful instrument to instil financial responsibility in students. By encouraging students to actively participate in financing their higher education, parents empower them as independent individuals. This imparts valuable lessons in financial prudence, preparing students for the responsibilities that come with adulthood.

The pivotal role parents play in navigating and enhancing their children’s educational experience:

· Creating a supportive environment: Fostering a conducive and encouraging environment at home is essential for a child’s educational success. This involves instilling a love for learning, maintaining open communication, and actively participating in their academic pursuits. Furthermore, these days, students do not believe in depending on their parents to finance their education. By welcoming this pro-credit sentiment of their children, parents can encourage them to be Atmanirbhar. Lack of funds will never stop their children from accessing quality education because embracing education loans isa viable investment in their children’s future.

· Academic counselling: Parents serve as the first point of contact where children will approach them to share their academic aspirations. Students will discuss their plans related to their educational path, career avenues they are willing to pursue, and education loans. So, parents can be their guiding force, showing them the right direction from the very beginning. They can set their children on the right path by sharing their outlook, knowledge and latest information on the job market.

· Financial direction: Their experience can add value, especially in financing. Usually, parents know how financial solutions work, things to keep in mind when applying for an education loan, basic documents required, etc. They can further support their kids by actively participating in the application process and co-signing the loan as co-borrowers. This can enhance the overall creditworthiness of the loan application. Parents can take a step further by considering offering collateral against the secured education loan by pledging an asset such as property or fixed deposits. Their direction and financial support can strengthen their child’s morale and contribute to successfully acquiring an education loan.

· Teaching financial literacy: Alongside encouraging education loans, parents can impart valuable lessons in financial literacy. Educating children about managing finances, budgeting, spending judiciously, saving money, and the importance of responsibly repaying loans equips them with essential life skills. They must encourage their children to pay simple interest (SI) or partial interest (PI) during the moratorium period, as this is not an interest-free period, and interest begins to accrue from day one. Paying SI/PI instills financially prudent habits. Moreover, parents must encourage students to build an emergency corpus in case of contingency. This way, students can continue their education and pay their EMIs even during emergencies such as a pandemic.

· Nurturing resilience: PM Modi’s emphasis on fostering resilience in children highlights the importance of equipping them with the ability to overcome challenges. Parents can nurture resilience by teaching problem-solving skills, encouraging a positive mindset, and emphasizing the value of perseverance in the face of setbacks. For instance, students who study abroad must look after their health and finances and study rigorously.

· Balancing support and independence: Parents can also encourage their children to develop a sense of independence and responsibility while providing unwavering support. Allowing them to make decisions, take ownership of their education, and learn from their experiences prepares them for the challenges they may encounter in the future.

Successfully navigating the educational path requires a collaborative partnership between parents and their children. In this process, parents play a pivotal role in influencing their children to achieve their academic and career aspirations by crafting a supportive environment where learning can flourish. By establishing realistic expectations, parents provide a sturdy framework for their children’s educational pursuits. Furthermore, their proactive stance in promoting educational financing options adds a strategic layer to this collaborative effort. Empowering students with financial responsibility and resilience not only facilitates a more seamless educational experience but also provides them with the essential skills to excel in their future pursuits.In essence, this partnership between parents and children transcends the academic realm, evolving into a dynamic force that propels students towards excellence in both their educational journey and the challenges that lie beyond.

(The author is Chief Business Officer – Student Lending & Insurance Business, Avanse Financial Services)