Disclaimer

This is to inform that by clicking on the hyperlink, you will be leaving sc.com/ae and entering a website operated by other parties.

Such links are only provided on our website for the convenience of the Client and Standard Chartered Bank does not control or endorse such websites, and is not responsible for their contents.

The use of such website is also subject to the terms of use and other terms and guidelines, if any, contained within each such website. In the event that any of the terms contained herein conflict with the terms of use or other terms and guidelines contained within any such website, then the terms of use and other terms and guidelines for such website shall prevail.

Thank you for visiting www.sc.com/ae


Proceed to third party website

Paying for tomorrow’s education starts today

Ae education tomorrow starts today masthead new

Paying for tomorrow’s education starts today

Have you realised how funding a child’s education ends up teaching the parent a lesson in finance management?

It begins with primary and secondary education. As a parent, you want to send your child to the best schools, and this normally equates to higher school fees. Along with this comes costs related to transport, after-school activities, uniform, stationery and device expenses.

Some parents turn to banks to ease the financial burden with the help of credit cards as they offer installment plans at a low interest rate. However, to avoid mounting debt, parents should have a strong financial discipline when using credit cards to cover school fees.

Then, there is the challenge of higher education costs –the lack of funds shouldn’t come in the way of acknowledging your child’s dreams. To save effectively, It’s Important you have a solid plan. Here are some simple steps to help you get started:

Step 1: Research the cost of education to get an estimate of eventual costs

Understanding the current cost of education depends on the level of education you want your child to get, and the type of college/university. Also, determine whether your child will study locally or abroad for graduate and post-graduate degrees and at which institutions.

Step 2: Determine the time horizon

For investments, time is the most crucial factor. A time horizon is the number of years you have left to save – between your child’s current age and when they start university.

Step 3: Consider the impact of inflation

Many studies across different countries have shown that the rise in cost of education has galloped past the rise in inflation. You need to factor in the rate of inflation in the country that you are considering.

Step 4: Pick a rate of return that you would need

Picking a reasonable rate of return on your investments is important. This rate should be higher than the rate of inflation so you can preserve the purchasing power of your money. E.g. A mutual fund could give a higher rate of return than fixed deposits. Although the rate of return  may not be fixed, you can take an educated guess on the long-term returns of a moderately risky mutual fund – like the My Future Saver plan (an investment-linked insurance policy).

Step 5: Calculate the required monthly savings

Finally, with the expected rate of return and the final estimate, you can calculate the exact amount you need to save monthly. An online calculator can help figure out how much you will need to save every month.

Follow these 5 steps to calculate the exact amount of monthly savings you need to meet your child’s higher education goal.

You can also talk to our Wealth Specialists to assist you further with your child’s education savings plan.

Disclaimer

Insurance Products: These products are subject to individual risk profile and product suitability which is determined through completion of Customer Investment Profile and/or Insurance Financial Needs Analysis. Standard Chartered Bank does not offer insurance advice, nor does it underwrite or issue insurance policies. Insurance products are underwritten by third party insurance providers. An early termination of the policy usually involves surrender charges. In some instances the returns you may receive could be less than the premiums you have contributed. Standard Chartered Bank shall not be responsible for insurance provider’s actions or decisions, nor shall Standard Chartered Bank be liable regarding payment of claims or services under the policy/insurance contract or in any manner whatsoever regarding your application or the contract of insurance.