There is no right time to save for our child’s college than today even if he is still just a wee baby. Sending a child to college is expensive here in Singapore let alone sending him overseas. If we have an average income, it is hard to set aside money for college but we have to do it for the sake of our children.

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Here in Singapore, a four-year course costs S$25,000. It does not end there because we still need to give our child monthly allowance not to mention school projects. Let us assume that we will spend $50,000 in total in the course of four years. Let us also take into account the inflation rate of 1.5% per annum so parents should expect about S$67,000.

How do we amass this $67,000 in 20 years for only one child? This sounds difficult but it is necessary if we want to ensure the future of our kids. Here are some tips on saving for our child’s college without compromising our retirement plans:

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  • Do it diligently: Saving is hard especially with everything that is going on but if we do it diligently, things are possible. We have to give credit to parents who diligently save for the future of their children.

 

  • Baby bonus + CDA + savings: Here in Singapore, for every child born, the government will give a baby bonus worth S$8,000. It does not end there, the government also promise to match dollar for dollar money saved in CDA (Child Development Account) up to S$6,000. These opportunities should not be taken for granted.

 

  • Baby bonus + CDA + ETFs: Granting we have $8,000. The government only allows dollar for dollar matching up to $6,000. We can put the remaining S$2,000 into ETFs. ETFs are investment plans given by brokerage houses. The investment plans will permit us to secure stocks for as low as S$100 per month.

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