Mums and Dads, education is one of the greatest gifts that you can give your juniors to provide them with a head start in life. But are you prepared for the hefty price tag that comes along with it? Presented by Maybank.
Top-notch education is one of the best investments for a child’s future and many parents spend copious amounts of time and effort to ferry their children around for endless enrichment classes and tuition.
And if you think the cost of education is breaking your bank now, imagine what it will be like when your not-so-little-one heads off to university!
Did you know that the cost of tertiary education is set to skyrocket?
According to a recent study conducted by the Economic Intelligence Unit (EIU) mentioned in the Straits Times, a four-year degree in 2030 will cost a hefty 70.2 per cent of your yearly income, up from 53.1 per cent the previous year.
If the tuition fees for a local undergraduate entering university in 2017 costs approximately SGD 32,000, imagine the huge impact this would have on our wallets come 2030! Although this is certainly a hefty price to pay, we would still do all we can for our child to get that golden ticket to success, right Mums and Dads?
Now that a university funding goal is in sight, you may wonder – are my savings enough for their entire degree? Can it also cover their living expenses should they choose to study abroad?
Save early to secure your child’s future
It pays to plan ahead for your children’s education. One way to boost your university savings efforts is to consider a savings account early. However, with so many banks offering kids’ savings accounts out there, don’t just settle for the first one you find.
Here are some tips on choosing the right children’s savings account.
#1 Keeping costs low
Always check the terms of the account. Many banks will charge you a minimum balance requirement fee if you fail to maintain a certain amount in your account.
Any penalty or monthly account maintenance fee will quickly eat away at your attempts to save money.
#2 Going for incentives
By trying to stay competitive in the market with no shortage of options, many banks offer children savings incentives for owning an account. This includes birthday treats and special interest rates when the account hits a certain amount of savings.
#3 Getting the optimum interest rate
Known as a vibrant financial hub, Singapore offers many banking choices. If you shop around, you will be able to find a savings account that allows your child to earn money in the long run.
On the next page, find out how much interest you can get by maintaining a SGD 50,000 balance. We do the math for you.