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Funding Education for Your Child in Singapore

 

Education is a tricky subject. While many parents would love to send their children to the best schools with quality education, these schools are expensive and many families cannot afford them. Regardless, many families recognize how competitive the job market is and how a college education puts an individual above the rest. 

 

We understand the struggles that come along with education planning and finances, and we’re here to help you! Here are some of our suggestions to planning your finances so your children can have the education they deserve.

 

College Costs

 

Key points

  • Start investing when your child is young. It accumulates more than you realize.
  • Make a pros and cons list with your teenager with their top five universities.
  • Break down financial goals into more manageable monthly goals.

 

The prices for university will vary drastically depending on the options you’re able to choose from. Seedly Reads says about costs, “For simplicity’s sake, let’s assume that they are enrolled in a local university and are not taking specialised programmes like medicine or dentistry. With the MOE tuition grant, an average programme will cost you about S$9,400 per year, along with miscellaneous fees of S$200 per year.”

 

Add all of that up? You’re looking at spending approximately S$38,400 over 4 years. And this is truly the minimum, with costs ranging upwards of S$70,000.

 

Plan and Prepare

 

Key points

  • To prepare, check out specific grants through the Singaporean government.
  • Think about establishing a college emergency fund where you save up a little extra!
  • Start by calculating your total budget and see what’s possible for your family.

 

Life can throw curve balls into just about any aspect, and that’s why planning is so important. When your children are still young, start the discussion with your spouse about school and options you have with your lifestyle. Start savings as early as you can!

 

Starting a monthly savings plan from early on will help you stay disciplined and dedicated. After several years, it will add up and the savings will help keep your children from having to take out massive loans to cover their education expenses.

 

This part may be the hardest part – but stick to the budget! Let’s say university will cost S$80,000 total, and you have 18 years to prepare. You have 216 months to save in that timeframe, which means you’ll need to put aside approximately S$370 per month to save up.

 

This will take some sacrifices! You may need to forgo the newest toys, clothes, and more in order to save. 

 

Invest

 

  • A great way to save is to open an DBS Multiplier account.
  • If it’s an option for your family, an Endowment Plan protects your money and provides insurance for your money!

 

Let’s talk about interest. Where can you put your money so it’ll work as hard as you do? If you’re able to set aside a chunk of change every month to save up for your child’s future, then meeting financial goals is on the top of your list. Remember that S$370 per month you need to set aside? If you’re able to incur interest, you can afford to put in less. 

 

This guide for investing will be a great help as you take this path!

 

Summary

 

Your family is the most important asset, so take the above notes as guidelines towards success. Some families cannot save like this and that’s okay! Raising a child will heavily affect your finances, and it’s normal to have questions.

 

Curious about more financial information? Follow our blog!

 

Resources used

 

https://singaporefinancialplanners.com/blog/education-planning-singapore/ 

 

https://sg.theasianparent.com/5-things-you-need-to-know-about-education-planning 

 

https://blog.seedly.sg/child-university-education/ 

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