I saw an article in the Sunday Times about the high cost of financing your child's tertiary education and the need to make savings towards this goal. I wish to supplement the article with these tips:
1. Financing your child's education is only one part of a total financial plan. You also need to save for your own retirement needs.
2. You should set aside 15% (or more) of your monthly income towards savings, on top of your CPF contributions. There will be times in the future when your income drop or you have to meet unexpected expenses or you get unemployed - so it is important to make adequate saving when you have a steady income.
3. You have to invest your savings in a low cost investment fund to achieve a yield of 4% or higher for the long term. Your money in the bank earns less than 1% per annum. The bank may try to sell you a life insurance policy that give you a long term yield of less than 3% per annum (and it should be avoided).
4. Read about financial planning from my book here (www.tankinlian.com/ishop) or attend the educational talks organised by FISCA (www.easysearch.sg/fisca). Be educated about financial planning and be able to make the right decisions.
Tan Kin Lian
1. Financing your child's education is only one part of a total financial plan. You also need to save for your own retirement needs.
2. You should set aside 15% (or more) of your monthly income towards savings, on top of your CPF contributions. There will be times in the future when your income drop or you have to meet unexpected expenses or you get unemployed - so it is important to make adequate saving when you have a steady income.
3. You have to invest your savings in a low cost investment fund to achieve a yield of 4% or higher for the long term. Your money in the bank earns less than 1% per annum. The bank may try to sell you a life insurance policy that give you a long term yield of less than 3% per annum (and it should be avoided).
4. Read about financial planning from my book here (www.tankinlian.com/ishop) or attend the educational talks organised by FISCA (www.easysearch.sg/fisca). Be educated about financial planning and be able to make the right decisions.
Tan Kin Lian
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