• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Go to Expat Living Hong Kong
Get our Newsletter

Lifestyle Guide To Moving To & Living in Singapore - Expat Living HomepageLifestyle Guide To Moving To & Living in Singapore - Expat Living

Moving to Singapore and not sure where to start? Expat Living is the essential lifestyle guide to living in Singapore.

Menu
  • Living in Singapore
      • Living here
      • Neighbourhood Guides
      • Schools
      • Property
      • Work And Business
      • Finance
      • For Guys
      • Environment
        • UFIT TennisOutdoor activities – group fitness classes, tennis, cycling etc.
        • feng shui focus lucy richardsonExpat Journey: Lucy Richardson
        • Forbidden Hill fathers day gifts15 Fabulous Father’s Day Gifts and Things to Do
        • weddingTop 20 wedding venues in Singapore, for all sorts of couples
      • View all
    Close
  • Things To Do
      • Things to do
      • EL Events
      • Calendar
      • Competitions
      • Noticeboard
        • Muswell Hill comedy Pangdemonium dinner partyPangdemonium brings Muswell Hill to Singapore
        • looking for clues treasure hunt time heistWin big in the Civic District treasure hunt
        • As You Were ArtworksWhat’s on this week and beyond
        • The National Stadium - Sports Hub Best venues for concertsTheatres in Singapore plus venues for events & concerts!
      • View all
    Close
  • Kids
      • Enrichment
      • Kids Things To Do
      • Mums & Babies
      • Schools
      • Tots & Toddlers
      • Tweens & Teens
        • pre & post baby items cleaning by pramwashWhen did you last clean the baby pram?
        • Nexus International School students reading in library learning experienceLearning for the Future at Nexus
        • Forbidden Hill fathers day gifts15 Fabulous Father’s Day Gifts and Things to Do
        • fishing 3aHoliday fun and outdoor activities at this Adventure Camp
      • View all
    Close
  • Homes
      • Home Decor
      • Readers’ Homes
      • Furniture
        • feng shui focus lucy richardsonExpat Journey: Lucy Richardson
        • European bedding best mattressBest mattresses for the best sleep!
        • antique furniture singaporeAntique furniture shops – plus vintage and reproduction furniture!
        • Where to buy lamps in SingaporeWhere to buy lamps in Singapore – lights galore!
      • View all
    Close
  • Travel
      • Asia
      • Australia & New Zealand
      • Rest Of World
      • News
      • Travel Offers
        • ideas for a long weekend awayPlan ahead for that long weekend away!
        • international health insuranceProtecting your health overseas in 2022
        • Krabi Thailand beachfront villas for beach holiday in ThailandBeachfront villas in Krabi Thailand – perfect for your next beach holiday!
        • New ZealandYour mini guide to New Zealand
      • View all
    Close
  • Wine & Dine
      • Asian Cuisine
      • Western Cuisine
      • Bars & Clubs
      • Groceries & Speciality Services
      • Recipes & Classes
        • Pizza12 great places to get the best pizza in Singapore
        • Farmers market - butcher - meat shopTop butchers for good-quality meat
        • Sugarhall DaquriLatest bars in Singapore: New drinking spots!
        • M&S Meat Free NuggetsPlant-based nuggets – here’s what we think!
      • View all
    Close
  • Style & Beauty
      • Fashion
      • Hair & Beauty
      • Beauty Offers
        • hydrating products skinTried and tested: Hydrating Products for Dry Skin
        • ARIANE ZAGURY 2A Curated Fashion House for All
        • Frizz TreatmentIn need of a quick fix for frizzy hair?
        • Spray tan singaporeGet a golden glow quickly with a spray tan!
      • View all
    Close
  • Health & Fitness
      • Dental
      • Fitness
      • Medical
      • Wellness
        • injuries to hip and hamstring injuriesInjuries to hip muscles & hamstring injuries – how to treat them!
        • UFIT TennisOutdoor activities – group fitness classes, tennis, cycling etc.
        • overweightWeight gain and your health – How a GP can help
        • PainWhat is pain and how do you treat it?
      • View all
    Close
  • Shop
    • PRINT MAGAZINE
    • DIGITAL MAGAZINE
    • BOOKS
    • Close

How to save for your children’s education

21st August 2020 by Expat Living 3 Min Read

https://expatliving.sg/how-to-save-for-your-childrens-education-fund-school-or-university/

Whether it’s school or further education, unless you’re on a massive salary, you’ll need to put some thought and planning into how to save and put money aside for the fees. The earlier you start, the easier it will be.

Annual fees at international schools in Singapore vary from around $12,000 to over $54,000; and that’s before the extras such as school trips, books and music lessons. Even more dispiriting, the cost of a full-time, three-year course at Singapore Management University, including tuition and living costs, can cost nearly $170,000! If your child goes to university overseas, you’ll have to factor in accommodation and fees there, too.

saving for education costs

Let’s look at some scenarios and ways you can save for or finance education:

#1 Funding from capital

Tax-efficient investments can be used to maximise the return on whatever capital you’ve saved for your child’s education. The younger your child is, and the further from needing the funds, the more investment risk you may be able to assume, thus increasing potential growth.

As the time you need to use the funds approaches, you may consider moving them into more conservative investments, to help preserve their value. Careful monitoring of the investment will ensure that the money is available when tuition is due.

Example 1
Mr and Mrs Jones plan to send their daughter Emily to university in 15 years’ time. The university fees are currently $50,000 per year. Adjusted for inflation at a rate of 5% per annum, the cost of a three-year university course in 15 years’ time will be $311,839.

To reach this amount, Mr and Mrs Jones would need to invest a lump-sum of $150,000 today, based on a 5% growth rate on their lump-sum investment.

#2 Funding from income

Many parents don’t have the capital to invest for the future, so they must use their income to build an education fund. One way to invest smaller amounts regularly is through unit trusts. These are pooled investment funds that give access to a wide spread of shares, and other securities such as bonds.

As with funding from capital, the length of time of the investment and attitude to investment risk is key to successful planning.

Example 2
Taking the same example above, Mr and Mrs Jones would need to save $1,173 per month to obtain the $311,839 needed to fund their child’s university fees in 15 years’ time (based on a 5% growth rate).

Seek advice and prepare early!

Education fees are increasing all the time, so the sooner you start planning, the better. Contact AAM Advisory today to discuss your investment goals for your children’s education.

Don’t put this off – delaying an education savings plan by just one year can have a dramatic effect on the end sums.


Written in collaboration with
AAM Advisory

This communication is intended for information purposes only. It may not be published, circulated, reproduced or distributed in whole or part to any other person without prior consent of AAM. This should not be construed as an offer, solicitation of an offer, or a recommendation to transact in any products mentioned herein. The information does not take into account the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a licensed wealth manager regarding the suitability of the investment product before making a commitment to purchase the investment product. While we have taken all reasonable care to ensure that the information contained in this document is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness. Any opinion or estimate contained in this document is subject to change without notice. The above report may contain data obtained from third parties and as such we cannot guarantee the accuracy of this data. The value and any income accruing to the investments, if any, may fall or rise. An investment is subject to investment risks, including the possible loss of the principal amount invested. AAM advisory Pte Ltd is licensed by the Monetary Authority of Singapore, FA Licence no 100032.


Learn more about International schools in Singapore

Expat Living

Expat Living has everything to help you make the most of living in Singapore! We've got information on neighbourhoods, things to do and see, dining, entertainment, schools, travel, fashion, furniture, finance, health and beauty. And more!

Get the latest events, stories and special offers
sent to your inbox.

By signing up, you'll receive our weekly newsletters and offers, which you can unsubscribe to anytime.

Categories: Finance Kids Tots & Toddlers Tags: AAM Advisory Saving for education School in Singapore University Fees

You May Also Like

pre & post baby items cleaning by pramwash

When did you last clean the baby pram?

Nexus International School students reading in library learning experience

Learning for the Future at Nexus

Holiday fun and outdoor activities at this Adventure Camp

Primary Sidebar

  • Competitions
  • Noticeboard
  • Subscribe
  • About
  • advertise
  • Contact
  • Privacy

© 2022 Expat Living Singapore, All Rights Reserved.