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Parents are generally concerned about their children's education. For young couples
in their mid 20s, they are increasingly worried as to whether they will be able to
meet their obligations to fund their child's higher education. In this competitive
world, education is not optional but a critical determinant of the future.
As at 20/11/97
Source: Normandy Research
Ringgit to 1 unit of foreign currency
Figures have been rounded up in the computation
Table 2 shows the average annual tuition and fees for selected universities.
Table 2. The Average Costs for Selected Universities
Source: Asiaweek Magazine
Note: All figures are converted into Purchasing Power Parity (PPP), which takes into account price differences in each country.
All of a sudden you realize that your son or daughter will be ready for university in the next few years and you have not planned or saved anything. Will you be able to afford it when the time comes?
It costs roughly RM30,000 per year for higher education fees locally (amount varies with the type of course selected) and at least RM50,000 per year (depending on which country and course type) for attending a foreign university. You need that amount of money for an average three to four years. How do you get that money? The economic slowdown and the weakening Ringgit is another worry. You get totally depressed.
Do not be distressed, you are surely not alone. In fact, there are only a handful of parents who seriously plan for their childrenís education from an early stage. Some parents save less than half of what is needed to provide for their education expenses while there are some who have not saved anything at all.
Despite the current crisis we are facing, the good news is that planning does make education more affordable. If you are planning for your childrenís education, ask yourself the following simple questions;
1) What kind of college will your children likely attend?
2) How long is the entire study course?
3) Have you saved anything towards your children's education? If yes, how much?
4) How much time do you have left to save?
5) Are you able to seek any form of financial assistance?
6) Do you want your children to work part-time while at college?