Education funding is one of a major concern for parent. The cost of education is getting higher and higher with inflation and will continue to rise in the future. The table beside is to show you how much of today cost if you plan to send your child overseas.
Using our MAAKL Planner, I’ll show you a case study.
Assuming, Audrey is 2 years old. Her parent plan to send her to study in
How much her parent needs to save?
Looking at the plan, her parent today needs to have RM479,058 investing with an ROI of 8% for the next 16 years.
From the planner we can see that her parent only invested RM10,000 and the balance is RM469,058. If her parent doesn’t have this money, how much they need to save monthly? Their annual investment required is RM52,993 and therefore they need to save RM4,416 monthly. Is this amount scary to you or affordable to you?
It is very important for parents to be aware of education cost and then decide where to send their children to study. Higher education no longer guarantees a higher paid career, but no higher education almost certainly dictates a low paying job. Going to university is expensive, but not going is likely to cost your child even more.
If you need to work out a plan, email me at: injanuiti.consultancy@gmail.com
From the desk of Janice
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