Education Planning

Education planning , as in financial planning , involves the setting of priorities and deciding what you have to do to achieve your goals.

So What is education planning ?

1. It is an exercise to look forward now to assess the financial requirements for a child to successfully complete tertiary education.  
2. To take actions today to meet the future financial requirements 

Is Education Planning Important? 

YES !!! ...... 

·          Educational costs will keep Increasing. 

·          Government subsidy will decrease over the years 

·          Start early to benefit from higher savings 

Why the Need for Higher Education? 

1. The future Singapore economy will be based on high-value goods and services that requires our human resources to have complex skills in the management of people, information and technology. 
2. Higher education tends to result in higher income 
3. University graduates earn much more than non-graduates 
4. The value of university education will become even greater in the future 

How will Rising Educational Costs Affect You?

• Singapore  government have reduced subsidies for  education from 78% in 1995 to 75% and is planning to reduce more in the long term.  
• As a result NUS  , NTU , SMU  plan to increase cost  
• Cost of university education rising by 5 - 6% every year 

 *based on 5% inflation

What Is The Cost Of Delay ? 

Assuming a local university education will cost $45,000 in 20 years , how much will you need to save in order to achieve that goal ? 

Your Savings Goal = S$45,000 

* based on 4% rate of return 

So the later you start , the more you need to save and the more difficult it is to reach your goals.  

The sooner you save , the faster your money will grow. 

In Summary
Education planning is required because  

ü        Higher education tend to result in Higher Income. 

ü        Complex skills required for future economy.  

ü        Increasing Education costs. 

ü        Reduction of Government education Subsidies. 

ü        Insuring against the child’s Future Income in case of premature death or disability of the parent. 

ü        Never Too Early to start, whatever the amount 

Contact us now for a FREE consultation and planning.

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