As a parent, you’ll want to provide your children with the very best in life. Unfortunately, giving them the best is going to cost you.
According to an article written by Seedly in September 2019, the cost of raising a child in Singapore averages around S$285,000* at the very least. That’s a significant sum, regardless of what line of work you’re in, and a large bulk of it will come from your child’s tertiary education. Whether they’re studying locally or abroad, you’ll want to be sure you have more than enough to cover their expenses. The need to start planning and saving begins now!
Before you commit to a plan of action, it’s best to first explore your options.
Junior Savings Account
In most instances, Junior Savings Accounts offer higher returns compared to regular ones. Even by committing a minimal amount of your salary monthly to your child’s savings, you can look forward to reaping significant rewards by the time your child is ready for college. Check our CIMB Junior Saver Account, which offers a competitive rate of 0.8%# p.a. on your child’s balances!
Child Education Policies
There are two basic types of Education insurance plans: endowment and investment-linked policies. Endowment policies resemble a savings account with insurance benefits whereas investment-linked ones let you invest, while retaining coverage at the same time.
Earn bonuses and top-ups
Above and beyond the assured income, you’ll also receive potential bonus payments added to your child’s education fund – even while you’re still paying the premium. This means that when your plan matures, you’ll receive more than the amount you were initially insured for.
It starts early – very early
Saving begins the moment your child is born. Start saving before your baby begins to crawl and by the time they’re ready for college, all they’ll need to do is keep running towards a great future.
Have a safety net for your nest egg should you, the policy owner, unfortunately pass away or become permanently disabled during the insurance tenure. The remaining premium payments will be waived while the policy remains in force.
Get everyone involved!
Saving for your child’s future can be a daunting task, but not one you have to tackle alone. In fact, it pays to get creative! Why not inculcate a spirit of saving within the household by rewarding your children when they save a portion of their pocket money each week?
Paving the way for a bigger, brighter future for your children will take time and sacrifice, but if you start early and put in the necessary foundations, they will surely reap the rewards in the long run.
#Daily interest will be paid on the entire daily balance, provided that the balance is at least S$1,000 on any given day.
This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy amongst Singaporeans. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions that will improve everyone’s well-being. This in turn, achieves CIMB’s purpose of advancing customers and society.
Deposit Insurance Scheme
Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under the Supplementary Retirement Scheme are insured by the Singapore Deposit Insurance Corporation, for up to S$75,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.