As a parent, you want the best for your child, and that includes giving him or her world-class education. In the face of rising education costs, coupled with inflation, are you saving enough to enrol your child into university 20 years later? Relying on bank savings can be tough as bank savings rates nowadays are no higher than 1%. Government subsidies can only go so far, and at the end of the day, loving parents still feel the pinch when it comes to footing the bill of a world-class education.
Table: Estimated university education costs in Singapore
| 2011 | 2031 | ||
| Total costs | Total costs | Inflation (p.a.) | |
| Singapore | $61,000 | $103,000 | 2.66% |
Source: Straits Times 2009 compilations and iFAST estimates.
Note: The figures are in SGD, includes inflation rate and rounded off to the nearest thousand. Costs include tuition fees for non-medical courses and living expenses for local students.
Lessen your financial burden with FSM Junior
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FSM Junior account kickstarts a savings plan for your kids, starting from as low as $100 a month. Consisting of Regular Savings Plan (RSP), it utilises the investing concept of dollar cost averaging which requires you to invest a fixed amount regularly. When markets move down, the fixed amount buys more units, and when markets move up, the fixed amount buys fewer units. This investment strategy is effective in building a long-term portfolio.
Potential returns are higher than current bank savings rates and, unlike traditional endowment plans; there is no lock-in period so you can stop the monthly contributions any time. We do not advocate shifting all your monies into FSM Junior; rather, consider including the FSM Junior in the context of a larger financial plan.
FSM Junior is applicable for kids below age 16, so help to spread the good news to your nieces and nephews. If you are new to investing or require assistance in starting your first RSP, contact our Client Investment Specialist team.
Start saving early!
Visit Fundsupermart for more details.