Planning for your Child's University Education

This article requires an average reading time of  3 minute 14 seconds. 
The arrival of a new child in the family is a good time to take stock of your finances and start planning for the child's future. As a responsible parent, it's natural for you to want to give your children a solid foundation in life so that they can build on that to live a successful and meaningful life. In today's highly competitive world, the best way to do that is through good tertiary education, which equips them with the knowledge and skill to hold their own and forge ahead in life. So what are the key factors to think through in planning for your child's university education?
Know your goal:
The cost of education is high and it can only be expected to be higher in the future. This means you need to start planning for your children’s education now. To get an estimate of how much money you will need, you should ask yourself questions like whether you wish to educate them locally or send them overseas, whether in a state school or a private school, and whether a professional course or other courses etc. Based on studies, the average education fee for Singaporeans in a Singapore university today is about S$40,000 for a 4-year course. Assuming you have a newborn daughter today, she will enter university in 18years’ time. By then, the fees for a 4-year university course would have grown to about S$96,000! Yes, the education fee inflation in Singapore is about 5% per annum, much higher than the core inflation rate.
Prioritize your goals:
Setting priorities is important when planning for your children’s future. At the top of the list should be life and medical insurance for yourself to make sure that there will be adequate funds for your children’s upbringing and education should anything happen to you. All your savings and investment efforts will be futile when all your funds get channeled to paying medical bills should critical illness strike. Buying medical insurance for your children is equally important as well in case they fall ill. Once these are taken care of, you can then have a peace of mind while you shift your attention to various ways of funding for your children’s education.
Sources of funding:
There are various products to invest and save for your child’s education. Savings endowment plans from insurance companies is one very common option for those who are risk averse as a portion of the maturity value will be guaranteed by the insurer.
For those who can take more risk, investing in unit trusts can also be a good way to fund for your children’s education. However, the danger is that by its very nature as an investment product, it is subjected to short-term volatility. If you are planning to invest in a unit trust to fund your children’s education, one way is to be aggressive in the first 10 to 15 years and then switch gradually to bonds, which are much safer, or even to cash when the ‘maturity’ date approaches eg 5years before your child enters university.
As your child moves closer towards university, you can also explore other sources of funding like your CPF Ordinary Account savings, student loans, scholarships, bursaries and financial sponsorship.
Start saving and investing early:
The earlier you start saving and investing for your children’s education, the more money you will have at your disposal when they become ready to go to university. For example, if you invest in a portfolio now with an initial amount of $10,000 and add $300 every month thereafter, you will have about $156,000 by the time your son is ready to enter university at age 21, assuming an annual return rate of 5%. On the other hand, if you start ten years later, you will have only about $68,000, a stark difference of $88,000! This simple example illustrates the power of compounding interest; let time and money work for you, not against you.
Review your plan regularly:
Planning is a process and not just a goal. Things may change along the way and you should make adjustments to your plan accordingly. For example, if there is a significant improvement in your financial situation after five years, you could adjust your plan to start making bigger monthly contribution to the investment fund to reach your goal earlier. If, on the other hand, your financial situation deteriorates, you should seek ways, with the help of a financial consultant, to keep the plan alive. A good financial planner will be able to allocate your budget wisely right from the beginning into various types of plans such that your losses, if any, will be minimized or even eliminated should there be a need to pause some of the plan funding temporarily. Even when things stay as they are, it’s a good idea to review your plan regularly with a professional.
Insure yourself, protect others.

Like us at our Facebook Page. Request for a Free Life Insurance Quote or Buy your Personal Car Insurance today!
Disclaimer: All information, commentary and statements of opinion contained in this publication are for general information purposes only. They are not intended to be personalized financial or investment advice as they do not take into account your individual circumstances. You are advised to speak to a qualified financial consultant before making any financial decision. This publication should also not be construed as an offer or solicitation to purchase or sell any insurance or non-insurance products including any that may be mentioned here. Whilst we have taken all reasonable efforts to ensure that the material contained in this publication is accurate and informative, and the author of this article do not warrant or guarantee its accuracy, reliability or completeness., its employees, parent, related companies, agents and the author of this article will not be liable for any direct, indirect, incidental or any other type of loss or injury resulting from your use of this content.
Copyright © 2023 All rights reserved. No part of this publication may be reproduced, stored, transmitted in any form of by any means without’s prior written consent.
If you are seeing this article sent through your email from, it is because you had subscribed for it at some point in the past. If you do not wish to receive such emails in the future, you can unsubscribe by clicking here to submit your request. Thank you.

The author of this article, Mr Sean Ong is a Certified Life Coach, a Master Practitioner in Neuro-Linguistic Programming and a Chartered Financial Consultant who has been featured on the local TV and radio, having begun his career in the finance industry since year 2002. In his efforts to contribute to the society, Sean ran 1,000 km over 87 days to successfully raise more than $13,000 for a children charity in year 2012. He also published a book subsequently where sales proceeds were donated to charity. Sean completed his Masters of Science Degree in Technopreneurship & Innovation in year 2020 and was honoured in the Director’s List for academic excellence. He has keen interests in InsurTech projects and mental wellness initiatives for the youths. Above all, Sean counts knowing Jesus Christ as the most significant event of his life. He can be contacted at


You Might Also like
This article requires an average reading time of 1min 55sec.
Do less and have more for retirement? Is there a typo mistake here? Fret not, read on!
A simple question for all: Do the ‘golden years’ of comfortable retirement occur by itself without any intervention or does it take wise planning to do so?
If your answer is the former, please sell me this magic formula. 
If your answer is the latter, then check out the example below.
This article requires an average reading time of 3 minutes 6 seconds. 

Many parents will agree that one of their most defining moments in life occurred at the birth of their child. A child is a blessing from above and he/she is seen as a ‘continuation’ of ourselves when we depart from planet Earth. As such, many parents would want to have a glorious ‘continuation’, by planning for their children from the school they must attend to even making it a personal goal to buy a house for their children. It is also no wonder that many parents would purchase education savings or investment plans in order to save up for the hefty university fees for their children in future. However, there are “must-knows” factors to consider first before we embark on education fund planning for our children.

This article requires an average reading time of 2 minute 43 seconds. 

Financial planning involves establishing goals, working out what assets and liabilities you have, evaluating your current financial position, developing a plan to achieve the goals, implementing the plan, and monitoring and reviewing the plan whenever needed. The main goal of a financial plan is to achieve financial freedom and this cannot be done without doing the 4 things below: is jointly owned by ALP Rocks Pte Ltd “ALP” and IPP Financial Advisers Pte Ltd “IPPFA”. IPPFA is a Financial Advisory Firm licenced under the Financial Advisers Act and Exempt Insurance Broker. ALP is a Singapore-registered Fintech company certified by Singapore Fintech Association as an InsurTech provider. ALP has been appointed by IPPFA as the administrator of this website.

All insurance quotations on are provided by IPPFA with any financial advisory process to be conducted by a Financial Adviser Representative from IPPFA. Details of IPPFA’s license can be found at