April 20, 2024

How to Save For Your Child’s Education: Here is What We Do

Library-visit-with-child

Every parent loves to see their children get educated. It is the same with us. However, we already know that education expenses are higher, especially in Singapore. We don’t know what the future will be. This is why we as parents, are keen on saving some money for our child’s future education. As parents who graduated with university degrees, we would like our child to experience his higher education in a reputed university when it is the right time. I know you all are the same and plan for your children’s future. Therefore, I thought of sharing some of our tips on how we save money for our child’s education in this blog post.

While I plan for future expenses, I also save money from our daily expenses. In this way, we can easily manage our monthly expenses which will benefit the future. When we buy new school supplies for our son, I use different ways to save from back to school shopping. I even save money from our grocery expenses.

Well, coming back to the topic, below is how we save money for our child’s future education.

Start early

Don’t wait until your child is in high school to plan his university tuition costs. Instead of that, start early. Although my son is still 9 years old, we planned his future education at the time he was just born. When he was an infant, we looked for different saving options and found a better plan for a long-term deposit. With this saving plan, we will have a reasonable amount for his university education when he reaches 18 years old. Therefore, my advice would be that don’t wait till it is late. Start planning early and save for your child’s future. It can be a small amount of money. But, a deposit as an investment is always a good choice.

In case you are in doubt about how much to save to use in future, use this Education Savings Calculator. It will give you an idea about how much you should save today to withdraw a higher amount in future. Other than that, you can always check with your bank for available options. I do calculations using online calculators when I want to plan for future savings. It is not only for my child’s education. Even for my retirement plan.

child education

Open a specific account

This is your second option to save money monthly. While you can deposit a higher amount in a fixed deposit to withdraw when the child is grown up, you can also maintain a separate account for education purposes. You can still open that account under your name. In that way, the deposits are under your responsibility and you can even withdraw if there is any urgent matter without looking for loans. But, plan this account as an educational fund for children. Each month, you can save a small amount of money in this specific account. Then you will not have to worry once the child is grown up.

Consider other sources of income

Although saving is possible when you have a decent income, it can be impossible when your monthly expenses are higher than your salary. But, there are many different ways that you can earn some additional income. A part-time job during weekends or after office hours may suit some of you. You can even think of a home-based business if that suits you. There are different options that allow you to earn a side income while in full-time employment. Check what suits you to earn more for the sake of future costs. Other than that, you can even save money on your expenses. Check how I save money from baby expenses when my son was an infant.

Don’t forget to review your plan

Once you choose a saving option, make sure to review it from time to time. Check the progress and consider moving your money if you find a better option. But, always deposit your money with registered and reputed financial institutes to prevent the risk of losing your hard-earned money.

This is my advice to you on saving money for your child’s university education. Have you thought of it? Did you worry about thinking about how to save for your child’s education? Please share your thoughts and experiences.

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Amila Gamage Wickramarachchi

Amila Gamage Wickramarachchi is the founder of this blog. She shares her parenting and lifestyle experiences of raising a child in Singapore.

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3 thoughts on “How to Save For Your Child’s Education: Here is What We Do

  1. So many great tips for saving. We started saving for both of our boys as soon as they were born. I honestly can’t believe how fast the years flew by! I blinked and my oldest son finished uni years ago and is working and now my youngest will start uni next year.
    #mmbc

  2. With three boys all born just a few short years apart it often felt overwhelming when planning for college; I mean we set aside a decent amount for them in their own saving plans but I knew there was no way we could offset the entire cost of a degree. But I figured any little bit helps and we’ll continue to help as much as we can and try to keep their student loan debt as small as possible.

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