Saving for Education - Financial Planning

Source: Saving for Education

Introduction to Saving For Education

Before your child even starts school, you would probably have spent a small fortune on many childcare programmes. This may continue into his/her primary and secondary school days, depending on his/her enthusiasm and persistence, as well as your pocket. Of course, when your child enters university, you have to fork out another big fortune on his tuition.

Financial Planning - Why Save For Education?

In Singapore, tuition fees at the three universities are currently about $8,000 to $15,000 per year (except for dentistry and medicine courses that are much more expensive). When it is your child's turn to enter university, this sum could have ballooned, with inflation and rises in fees. And if you send your child overseas, the bill, including school fees, living costs, air fares and other expenses, could easily amount to more than $70,000 a year.

Some parents regularly put aside a sum for their children's education, either into a savings account or an insurance plan. Others expect to rely on their CPF savings which can be withdrawn under the Education Scheme. However, note that CPF funds can only be used for local studies and have to be repaid with interest within 10 years. And there's also a risk if you can't sustain the saving due to unexpected incident like loss job, accident, huge medical bill.

How are you going to support your child? Want to consider insurance, but do you know how? Following article will help you understand an insurance plan for your child in no time.

Financial Planning - What's An Education Saving Plan?

It appears that these days, "insuring" the children's education is very necessary for many parents. An education Saving Plan is essentially an endowment plan better to put money into the Saving account of Bank, where the owner pays premiums for the term of the policy, which may be from only five years, and receives a lump sum at maturity. Some of the policies pay out a sum of money once every few years, for example five years. This payment comes in handy if you require some funds during the term of the policy, eg, if you want to send your child for those extra courses (piano, computer, etc).