Gone are the days of dropping the kids off at the local train station and waving them off to the local university, only to see them return the following weekend with a bag full of laundry and a ravenous appetite.
As an expat living in Singapore, you must prepare for the reality of global education. No longer are students only choosing which course they want to study, but also which country they want to do this in.
According to a recent study, UK university students graduating in 2020 did so with an average debt of GBP45,000 (SGD78,00) When interviewed about this, the graduates felt their debt was “weighing them down” and causing “anxiety” & “worry”. High levels of debt and a never-ending repayment period can take a huge psychological toll.
With annual tuition fees increasing each year, and with interest rates on the rise, this is a problem that will only become worse.
Every parent wants to give their child the best start in life, but unfortunately this sometimes comes at a high financial cost. The power of compound interest can be your strongest ally in this endeavour. The earlier you start saving, the more time your money has to grow. Even small amounts saved regularly can build a substantial education fund over time.
As well as the annual tuition fees, there are several other considerations you will need to factor into your planning.
Will your child be classed as a Domestic or an International student?
This will have a BIG impact on your planning as International and Domestic tuition fees vary considerably. Different countries have different rules on this.
If your child is classed as an international student, there may be visa requirements which vary from country to country. Some countries will require proof that you have the funds for the first year of tuition and living costs.
You may also be required to take out medical insurance. Even if the university offers cover, check the details, it may not cover GP visits/ dental and could be capped at a certain limit that may not cover your child should there be an emergency.
Living costs will vary city to city, and some universities make it a requirement for first year students to live on campus.
Living off campus may require larger security deposits and even guarantors for rental.
Planning for your child’s university education can be a complex task, but it’s undoubtedly a worthwhile investment in their future. The key is to start early, review your plan regularly, and seek professional financial advice tailored to your circumstances.
