Facebooktwitter

Being a seasoned adult working many years, we all know that without good tertiary education i.e. a degree, there’s going to be some obstacles and a ceiling to the career ladder that seems impossible to cross. We know the importance of education, the more the better as salary & job positions correlate with it linearly

It is common to hear of late bloomers. Kids who didn’t do well in primary school all the way to polytechnic or JC. However, kid-studyinglater in life they excelled in universities.

But wait a min if one didn’t do well in lower education it’s almost impossible to enter our much coveted NUS, NTU. However it’s still possible to study overseas.

Well this happened to me. But just as I thought the end of the road it is. Unexpectedly, my Dad said “son, I’ve gotten enough money prepared for you to study in the UK.’’

Back in 1999, it cost $35,000 a year to study engineering in Manchester. And that’s being frugal. Cooking my meals and not going shopping or partying on weekends. A typical engineering course requires 3 years thus total cost equals $105,000.

This was no mean feat for my father. He had to sacrifice and tighten his belt to manage this huge amount.

Taking into account inflation, today it cost $198,000. (only 17 years ago it was $105,000. After factoring a much weaker British pound)

Being overseas also helps one attain life skills and street smart abilities. The streets aren’t as safe as Singapore to be able to walk blindly. Often one has to do some research on areas and timings to avoid for safety sake. These abilities serves us well even when we go to work in Singapore . The Look , Study, before u leap mentality is useful in all aspects of life.

Independence is also learnt as loving parents aren’t around to settle chores for us. Wash , iron, cook and clean are all done ourselves. Discipline & focus is also cultivated due to remembering the sacrifices that parents and oneself has to make.

Is it worth forking out so much? Yes it is. Apart from academic results, soft skills are very much a key ingredient to success. The 1st Class Honours degree that I got has opened doors to PhD scholarships from famous universities in UK & NUS, NTU. It has also enabled me to attain a very successful career in the financial services arena. Factors were: strong drive, discipline, persistency and consistency all honed during my university days.

How much does it cost to study locally or overseas today?

cost-of-tertiary-education

ASSUMPTIONS:
Inflation rates for tuition fees and living expenses are 5 and 3 percent per year respectively.
Investment rate of returns or savings is 4 percent per year.

** For Universities in Singapore, Australia & USA assume 4 years course. For UK assume 3 years course.
*** Use a financial calculator to compute the monthly saving, PMT with Beginning mode.
Sources: University of Melbourne, University of Manchester, California Institute of Technology, NUS/NTU/SMU websites.

How to prepare the money & Why use insurance?

Let’s look at the reasons why people avoid starting an education savings plan:

I rather save in bank account,
can invest in property (e.g. condominium, executive condominium), equities in stock market,
Can start later at age 10,
Buy property,
All of which you can DIY if you’re healthy & alive. 

But what happens when you are called home by the good lord unexpectedly early? Or fall badly ill that salary drops?

Only insurance can fulfil this area. An education plan will grow alongside your child and thru the years as your precious child grows taller so will the education funds. It will also provide monthly living expenses for your child & spouse.

An important part of your foundation, insurance is. Especially when you have a new addition to the family.It’s definitely worth planning for your newborn!

About Author

dextergwee_aiaDexter Gwee
Executive Financial Services Consultant
SP-JAKEYU District
M: (65) 9144 8907
E: dexter@aia.com.sg

You would be able to contact him at 9144 8907 for more details.

Facebooktwitterhttps://www.babyclub.com.sg/wp-content/uploads/kid-studying.jpghttps://www.babyclub.com.sg/wp-content/uploads/kid-studying-150x150.jpgDexter GweeFeaturedParentingBeing a seasoned adult working many years, we all know that without good tertiary education i.e. a degree, there's going to be some obstacles and a ceiling to the career ladder that seems impossible to cross. We know the importance of education, the more the better as salary &...Pregnancy . Baby . Parenting