Education Funding

Most parents are aware of the huge cost of raising children in Singapore and one of the biggest financial concerns arises from the need to fund their education. One of the most common question that parents may ask is, how much does it cost exactly?


Most parents usually start to plan for their kids’ tertiary education around 10-15 years ahead of their expected entry to university. To paint a more accurate picture, let us begin by looking at the current cost of a university education and extrapolate it based on prevailing inflation rates.


How much does a tertiary education cost now?


The bulk of education cost is set aside for university and it is made up of 2 components, tuition fees and cost of living.


Tuition fees: This is the amount a student has to pay throughout the course. The fees are reviewed by the Universities every year and is charged at the rate prevailing at the time one accepts his/her offer of admission. Based on the statistics compiled below, having $40,000 will allow you to place your kids in any local university.

Cost of living: It includes estimated cost of books, supplies, transportation, meals, personal expenses and optional on-campus accommodation.

4 years Non-medicine course for a Singaporean= $40,000+ ($6,000 x 4) =$64,000


To provide a realistic reference point on how long it would take to save up, based on the assumption that if a couple were to save $500 monthly towards their child’s education, it would take them almost 11 years to reach this amount.


How much does a tertiary education cost in the future?


Let us do a quick projection on how education cost will look like in 2035 based on how tuition fees have increased over the years. In the previous table, we can see that between 2009 to 2017, the cost of tertiary education is increased at an average rate of about 4% per annum. Taking this trajectory path, parents can expect to pay a total sum of $130,00.

Is there a way to finance my kids’ tertiary education?


By looking at the numbers, it can be rather daunting and many parents may feel that it could be an uphill task to save up sufficient funds for their kids’ education.


One of the ways to build sufficient funds is to own an Endowment Insurance Plan. How the plan works is the monthly premium that are being paid will be accumulated and eventually grows as per the returns rate of the policy. The purpose of the plan is to enable parents to save and accumulate sufficient returns to fund for your kids’ tertiary education.

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