Starting early when saving for your child’s tertiary education is more crucial than ever, especially with education costs set to rise to 70% of an individual’s average annual income by 2030.
Already, university fees stand at several thousands a year –annual tuition fees at NUS start at $8,050 in 2016, after grants –so tertiary education is clearly not something the average parent can expect to pay for on a whim.
One of the financial tools you can use to prepare for your child’s future education needs is an education endowment plan, which combines regular savings with an investment element to provide better returns than plain saving with a bank.
This combination results in a lump sum accumulated and grown over the endowment policy period, which is ideal for funding a tertiary education.
There are several education endowment plans available, and deciding on the right one can be difficult. Before you commit to a plan, consider the following questions.
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