It is known as a fact that most Singaporeans are very much devoted to spending a fortune just to give their children a decent education. As a matter of fact, the private tutor industry in the said country earns around $1 billion annually. This is evident to the priorities of this country.
Based on a survey completed by HSBC, they discovered that Singaporeans are willing to allocate $21,000 yearly for the education of their kids. This should not come as a surprise anymore. It is understandable considering the fact that local university education is not really affordable.
What is alarming though is that 52% of these individuals are okay with debts just to sustain this need for their children. Most of the people in Singapore are leaning towards spending more money for their kids’ education than for retirement and bills.
Who does not want a brighter future for his or her children? Seeing him or her go to medical school, or becoming a hotshot banker is the dream of every parent out there. However, the big question is – are you doing it right? Are your sacrifices worth it?
Setting Priorities
Truth be told – the aforementioned is not wise at all. It must not be glorified. Parents must know how to deal with the education of their children practically. How can this be done?
Save and invest for the education of your kids as early as possible.
At the end of the day, this is not just about the willingness to settle the education of your kids. You also have to plan accordingly. Having big ambitions for your kids is a responsibility. If you are determined for this, and then you must start planning early. This must begin as early as the child is born. This is a way to access a decent amount of money for the education of your children.
Plan the education of your kids together with your retirement.
There are parents out there who have a notion that they cannot settle the education of their kids alongside their retirement. This is not true. There is no need to sacrifice your retirement. If you have to set aside a lavish lifestyle for a while to save, then so be it! You might really have to give up enjoyment to realize your goals in life. Make appropriate adjustments if you must!
Include the children in planning!
The last thing you can do is be too authoritative in the future of your children. Yes, you can plan for his or her education; however, your kids should be part of the planning process. You do not know the better ideas you may learn from them, especially when they are already old enough. Give this chance to them to prove themselves too!
Aside from the aforementioned, it will also help a lot to ensure that there are financial options available for your kids. Successes do not come for free! Plan them ahead!
