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Saving regularly as soon as your little one arrives, ensures you can plan their education – worry free.

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Saving regularly as soon as your little one arrives, ensures you can plan their education – worry free.

Hello, Harvard! How much should you save for your child to study abroad?

No sooner than your child is born, family and friends will start talking about whether the little one is going to study overseas to be a doctor, be educated at Harvard, or study economics at Oxford.

According to the recent Emerging Affluent Study 2018 across 11 countries, 43% of people surveyed rank their children’s education as one of their top three financial goals. But with sky-rocketing costs — especially for overseas education — how many can really achieve these goals?

What are the costs?

What are the costs?

In no time at all, 18 years will have passed and you will be waving your children goodbye as they leave for university. Whether they decide to study in Singapore, Australia, Hong Kong, the UK or the US, here are the tuition costs you could be looking at by today’s standards:

Annual tuition fees
                
University in Singapore            MYR 103,981- 136,475                      
University in Australia MYR 121,114 – 160,698
University in Hong Kong MYR 75,032 – 89,211
University in UK MYR 112,843 – 147,700
University in US MYR 199,100 – 236,321
             

Of course, like everything else, costs are on the rise and if you are looking at university fees 20 years from now, if your child decides to study in Singapore, a year’s tuition is likely to cost around MYR231,900 a year.

Costs don’t stop at tuition fees

Costs Don’t Stop at Tuition Fees

It’s worth remembering that on top of university tuition fees, you will have to find a way of funding books, transport, food and accommodation. On-campus living, for example, can be expensive, costing around MYR105,500 a year in the US. Other incidentals like flights home and paying to store belongings between the end of one university year and the next can all add up.

Don’t delay. Start today.

But the good news is that the sooner you start, the easier it is. If you start saving when your child is 5 years old instead of waiting until he is 10 years old, you will have nearly double the amount the time he goes to university.

Regular savings make it more affordable

Regular savings make it more affordable

Reaching what might seem a daunting target is made much easier if it’s through small regular amounts, which can be done through Regular Savings Plans (RSPs) or Endowment Plans.

Let’s look at Rachel Lo, 35, a successful business manager with a two year old son. She has decided it’s the right time to invest in his education, and will put aside MYR1000 a month in an RSP for the next 16 years to pay for his education.

By the time Rachel’s son reaches his eighteenth birthday, his mum will have invested MYR192,000. With a projected rate of return of 5% per year, she stands to have MYR293,000 in his education fund.

Investing over the long term means that Rachel will be able to ride out any losses, and her investment plus compound interest should meet all her son’s education needs.

Like Rachel, you can discuss with our financial advisors, how much you want to invest each month and the type of investments you would like to explore.

Get in touch with us .

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Disclaimer:

The article contained in this page are for general information only. This article and any material contained in this page do not constitute an offer, recommendation, solicitation to take up any products, enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments offered by the Bank. The article have not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice nor an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any particular person. You should seek advice from a financial adviser on the suitability of a product or an investment for you, taking into account these factors before making a commitment to invest in an investment or to take up any products offered by the Bank.

All information is correct at the time of publishing.