As parents, there’s nothing more important than giving our children the best possible start in life. For many, that means ensuring they have access to quality education, both in Singapore and abroad. But with education costs rising, it’s essential to plan early and wisely to make this dream a reality. Let’s explore how you can take proactive steps to secure your child’s education fund.
Education is one of the most significant investments you’ll make for your children. Whether you’re looking at local universities or prestigious institutions overseas, the costs can be overwhelming.
For instance:
These numbers can be daunting, especially when you consider that they might increase by the time your child is ready for university.
One of the best ways to ensure you’re financially prepared for your child’s education is to start saving and investing early. By planning ahead, you can take advantage of compound interest, which allows your money to grow over time.
1. Set Clear Goals
2. Explore Different Savings and Investment Options
3. Protect Your Savings
Let’s take a closer look at Ben and May, a Malaysian couple living in Singapore with two children, Lucas and Emma. Ben is a software engineer, and May is a staff nurse. They dream of sending their children to top universities in the US or Australia.
Understanding the significant cost of overseas education, Ben and May decided to start planning early. When Lucas was born, they set up an education savings plan, contributing SGD 500 per month for 20 years. This plan invested in a diversified portfolio of mutual funds, targeting a 8% annual return. Additionally, they secured term life insurance policies for both of them that ensure their children’s education would be funded if anything were to happen to them.
By the time Lucas is ready for university, Ben and May will have accumulated over SGD 200,000, covering a substantial portion of his education costs without compromising their current lifestyle.
Education funding isn’t just about saving; it’s about making informed decisions that align with your financial goals. As a parent, you have the power to shape your child’s future by taking control of your finances today.
By taking action now, you can give your children the gift of a bright and secure future, free from the financial burdens that might otherwise hold them back. Empower yourself with the right knowledge and tools to ensure your children have every opportunity to succeed.
If you’re unsure where to start or how much to save, send your enquiry to my WhatsApp (+65 8680 2340) or email (lidwinateo@fapl.sg). I will send provide a personalised financial proposal for you.
Remember, the earlier you start, the more time your money has to grow, making it easier to reach your goals.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
With over 5 years of experience in client service industries, I come to understand and appreciate the importance of high-quality customer service and customer experience. The key is to always prioritize the best interests of customers, ensuring their needs and expectations are met with professionalism.
The passion for client service extends into my current role where I strive to deliver personalized financial planning services. With more than 150 business partners in our company, I can help you achieve your financial goals by analyzing various financial products and offering tailored financial advice.
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