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Children’s education: do you think you are prepared?

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Are you prepared for your child’s tertiary education? Do you know how much it cost now and how much it will cost when your kid turns 18?

Mums, we know how hard you are working to secure a good future for your kids. Needless to say, your kid’s education is one of your biggest worries. You take extra effort towards it, running behind the kid to take him to enrichment classes and extra tuition. The strain on the purse is tangible, but no one complains!

But did you know how fast the cost of education is going up?

Take the example of Mrs Ong. Sue’s daughter studied at a local university. When her daughter graduated in 2015, she had paid a total of SGD 32,000 on her education.

Mrs Goh, on the other hand, had a son in May 2012. Fast forward to the year 2030, her kid would have turned 18 years old and her family would be going through one of the most important decisions – which university to go to?

If we compare the cost of education today to something similar 15 years from now, you would be amazed! Here is a chart of tentative costs to the parents for university degrees.

posb-estimates

As you see, a similar education would range from S$49,000 locally to S$ 550,000 in Australia in 2030.

Today, most of our kids go to local universities. There are also many who have top scores and wish to seek a degree from overseas prestigious institutions for the extra edge. As all parents are, you wish your child can develop his/her full potential and grant them the wish of studying at any university that they want.

But here comes the question – will your savings be sufficient for their graduate course? Can your savings cover their living expenses if they choose to study overseas?

We understand that the cost of education per child can be rather hefty, so you might have already started a savings account for them. The problem here is that your money will not be growing as fast as it should if you lock it up in a savings account.

How to make your money grow faster? Read on to find out. 

Education