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 locally in Singapore, or overseas in Australia, Hong Kong, the UK or the US, here are the tuition costs you could be looking at by today’s standards.
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 S$77,000 a year.
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 S$35,000 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.
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 S$1000 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 S$192,000. With a projected rate of return of 5% per year, she stands to have S$293,000 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.
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