Being a parent bears many responsibilities. Rising a child is not a simple task. Other than caring for them, we also need to ensure they learn the correct moral values, learns how to be independent, mix with the right company have proper social etiquette, etc. The list goes on. Although we hate to see them grow up and leave us, one of the most enjoyable stage of their life is to see them graduate from university.
As we all already know, university education is ever increasing. If we want the best for our child(ren), we will be better off to start saving for their university education. Click here to see what’s its like to send your child to university in 2021 https://blog.moneysmart.sg/education/singapore-university-education-cost/. However, if you plan to send them overseas, be very prepared for the much higher university education cost. Some of the popular destinations are US, UK, and Australia. As a simple rule of thumb, Australia will cost you 3x more for the same course in Singapore, excluding living, travel, health, and other expenses. US and UK will cost more.
As such, we encourage all parents to start savings early. You may not be able to save enough for the future but at least, you narrow the gap by saving as much as possible now. Never underestimate the power of compounding returns.
Some questions for you to ponder before you meet us.
How much have you saved now or what assets do you have that can be meant for your child university education?
Which university do you plan to send your child? What are the cost involved?
Is your child eligible for any grant or scholarship?
Consider inflation. It will increase your child’s education cost meaning you need to save even more.
Have you set aside emergency funds for yourself and your family before taking this step? Generally, you need 3 to 6 months of living expenses before you take on new savings goal.
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