With the rising expense of living and the ever increasing necessity for qualifications to advance in most organisations, many parents and individuals recognise the value of a degree. Many people, however, simply cannot afford the expensive university tuition prices without taking out loans.
Time to Plan Your Child’s Education
Education planning is the process of proactively identifying, developing, and implementing strategies to meet your child's educational requirements and aspirations. It becomes all the more challenging when education in Singapore is everything but cheap. And that is one valid reason why parents need to save ahead of time.
This includes making sure you have enough money to live comfortably while planning for your child's education.
Singapore citizens typically pay roughly $40,000 for a four-year undergraduate study at public universities. A specialised degree can cost you much further. It's nearly three times what it was a decade ago. And, due to inflation, it is expected to skyrocket in the next ten years.
Best Way to Plan Children’s Education
It can be difficult to plan for your child's education. However, with a little thinking and planning, you can make your job easier. While planning is important, you should also be aware of other important considerations before saving.
1. Rising Inflation
Inflation is an ever-present and persistent issue in any financial objective. In today's money, a four-year degree costs around $40,000. With inflation, we are certain that it will skyrocket.
Even if we assume a nominal annual inflation rate of 2%, inflation would be over 50% higher after 20 years. In the case of sending your child abroad, this sum would surge.
As a result, it's critical to account in inflation while budgeting for your child's university education. If you're having trouble estimating how much you'll need, talk to a trusted advisor.
2. Lifestyle Management
Keeping track of your daily expenses and budgeting for future needs is a tried-and-true strategy to save. Talk to your spouse about how you can cut back on non-essentials and live a more self-sufficient and waste-free lifestyle.
This does not imply that you must live a frugal living. Simply eliminate expenses that you can do without. For example, if you have less expensive dinner dates or hobbies like collecting expensive paintings, your finances will appear better.
Look for ways to fulfil your desires in a more sustainable manner and avoid overspending.
3. Overseas Studies
Your child may develop a desire for a career path that necessitates a programme that is not offered at local universities.
In this case, you may need to send them to an international university. The costs of studying in a foreign country will be significantly higher. On top of any miscellaneous fees, you'll need to include in living expenses including student housing, commuting, food, tuition, return flights, and allowance.
Preparing for the Worst
As parents, you would want your child to attend one of the greatest institutions in the world. However, always keep a backup plan on hand because, unfortunately, there is no such thing as a guarantee. The competition is fierce, and seats are scarce, especially for some popular courses.