What are the best financing options to pay for children's education in SG and abroad, including Junior College, private tuition and university? - Seedly
 

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Asked by Jose SM

Asked on 23 Jan 2020

What are the best financing options to pay for children's education in SG and abroad, including Junior College, private tuition and university?

What is the best, most cost-effective way to pay for my child's education in Singapore? Are there any hacks when it comes to this?

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Wilson Nid A Break
Wilson Nid A Break
Level 8. Wizard
Answered on 23 Jan 2020

Top-up your children CDA, government match dollar-for-dollar.

Instead of thinking to help your children save for their education needs, might as well think on how to help them to start investing asap. When they reached adulthood & had a sizeable investment portfolio under their name, a uni degree become an option, not an necessity

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There are only two ways to finance a kids' education in Singapore.

  1. Take a loan and pay interest

  2. Earn interest now and pay lump sum

Either way, you will need to decide on the best value for your money. To do this, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit. Here is a guide to help you: https://www.blog.pzl.sg/understanding-your-personal-cash-flow/

Thereafter, calculate the exact amount that you need with a delta. Then divide it over the number of years you have left.

Next, create a budget that is capable of helping you to plan for the future. The best way to do this is via automation and this is how I do mine: https://www.blog.pzl.sg/how-to-create-a-monthly-budget/

Now, figure out how to optimise the value of your money such that we can use a lesser capital to achieve the same effect. For instance, it may be to put into channels that generate guaranteed returns over time. On the other hand, you may consider investment-linked portfolios that can help you to grow your money at a reasonable risk level. Of course, you can have a mixture of both and have the best of both worlds.

All things considerd, having a well-defined goal and a budget is the most effective way to pay for your child's education. It is only when this is completed, then we create a plan to fulfils your needs.

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