7 Tips To Save Money For Your Child’s Education In Malaysia
- By CompareHero.my
- May 11, 2021
Education is important for the future and development of your child. As such, it is something that cannot be left out when saving for your child’s needs.
It is especially important to save up for your child’s education, as the prices are steadily increasing, more so if you’re planning on sending your child overseas to further their education. So how do you save up for your child’s education? Here are a few tips to get you started.
Related: Your Child Will Thank You For This – 9 Financial Moves Every Parent Should Make
Contents
1. Secondhand textbooks
Textbooks are costly, especially if you buy them new. Not only that, it is highly likely that those books will only be used for a year and not be touched anymore. In order to save, ask other mothers you know who have older children if they are willing to lend you their child’s old textbooks. After all, the syllabus remains the same, especially for primary and secondary schools. You can also get tax relief of up to RM 1,000 when you buy books from major bookstores if a new textbook is required. A library is always an option too!
2. Simplicity is best with school supplies
Another thing that you can save on is school supplies. Instead of buying fancy stationery, the simple ones work just as well. Especially when it comes to school bags and so on. Not only that, school uniforms can be worn again instead of getting new ones every year (unless they no longer fit your child of course!). You can also get hand-me-downs to save on the cost of uniforms.
3. Public schools aren’t all that bad
Let’s face it. Private schools and international schools will cost you an arm and a leg. Even so, it’s no guarantee that your child will receive better quality education as compared to public schools. So why not choose public schools and save some money? That way, all that extra money can be saved for when your child furthers their education.
4. Tax relief schemes for added benefits
In order to encourage the youths of our country to pursue higher education, the government has a few tax relief schemes in place. Some of the more well-known schemes include Skim Simpanan Pendidikan Nasional (SSPN or PTPTN), Child Education Insurance Policy and Post-Graduate Education. With these tax relief schemes, you can save up to RM 14,000 per year, excluding the RM 1,000 from the Book Purchase tax relief scheme.
Related: Tax Relief vs Tax Rebate: What’s The Difference?
5. Junior savings account for greater savings
Another good way to save money is through a junior savings account. This savings account is available with most major banks, and they normally offer a higher interest rate as compared to a regular savings account.
Not only that, but some of these accounts also offer accident coverage and cash rewards when your child performs well in public examinations. By adding some money into the account every month in this account, it will also prevent you from spending it on something else.
Related: Build Your Children’s Education Fund with These Savings Options
6. Educate your child on the value of money
Regardless of how hard you might be working to save for your child’s education, it is also important for you to teach your child about the value of money. This is important in order to build good financial habits within your child and to prevent them from spending frivolously and irresponsibly. By teaching them the value of money and how to save up, this will help them appreciate it more, and who knows? They might even start saving up for their own university fund!
7. Personal loans or additional financing
If all the saving is still not sufficient to help you fund your child’s education, there is always the option of taking study loans offered by various banks like CIMB and OCBC. That way, it will not only lessen the burden on yourself but also help your child reach their fullest potential.
If you choose not to take a study loan, you, or your child, can also opt to take a personal loan especially once they start working and are looking to further extend their qualifications with a part-time master or PhD. Research all the loans available to you and choose the best one based on your needs.
By using these tips, you will be able to save up some money for your child’s education, as well as help prepare for when your child pursues further education. Even if you’re a little late to the party, don’t worry! Just start saving up now! The sooner you save, the more money you will have for the future of your child.
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Akibat Tidak Bayar Balik Pinjaman PTPTN
- By CompareHero.my
Bersikap sambil lewa terhadap pembayaran balik pinjaman PTPTN anda? Dalam satu temuramah bersama Timbalan Ketua Eksekutif PTPTN, Mastura Mohd Khalid, beliau menghuraikan apa yang akan terjadi kepada peminjam PTPTN yang tidak membayar pinjaman mereka dan berkongsi penyelesaian bagi peminjam yang menghadapi masalah pembayaran balik.
Setiap tahun, PTPTN memperuntukkan RM 5 bilion untuk menyediakan dana pendidikan bagi rakyat Malaysia. Setakat 29 Februari 2016, badan ini menjangkakan mereka bakal mengutip RM15.8 bilion dari peminjam. Tetapi, hanya RM7.9 bilion pembayaran balik diterima. Ini bermaksud terdapat sejumlah RM7.9 bilion pinjaman tertunggak yang masih belum dibayar oleh peminjam.
Mastura menyatakan bahawa, “terdapat lebih kurang 600,000 peminjam PTPTN yang masih belum melakukan sebarang pembayaran bagi pinjaman mereka”
Berikut adalah tindakan yang akan diambil terhadap peminjam yang tidak membuat bayaran balik atau mempunyai tunggakan pinjaman PTPTN:
Contents
Akibat jika anda tidak membuat bayaran balik pinjaman PTPTN
Laporan kredit anda akan terjejas
Anda akan disenarai hitam di laporan CCRIS, dan ini akan menyebabkan kualiti laporan kredit anda terjejas. Akibatnya, anda akan menghadapi kesukaran sekiranya anda ingin memohon pinjaman dari bank. Ini kerana melalui laporan CCRIS pihak bank boleh mengetahui anda mempunyai corak pembayaran pinjaman yang tidak konsisten dan anda telah disenarai hitam.
Selagi anda tidak melakukan pembayaran konsisten untuk pinjaman PTPTN, anda akan menghadapi kesukaran untuk memohon pinjaman serta mendapatkan kad kredit dari pihak bank.
Anda tidak boleh ke luar negara
Penerima pinjaman akan disenarai hitam oleh Jabatan Imigresen Malaysia (JIM) jika tidak membuat bayaran balik atau mempunyai tunggakan. Implikasinya, anda bakal dihalang daripada ke luar negara, tidak boleh memperbaharui pasport atau memohon passport baru.
“Terdapat kes dimana peminjam menghubungi kami (PTPTN) setelah mereka sedar bahawa mereka dihalang untuk ke luar negara apabila berada di kaunter imigresen di lapangan terbang. Namun apabila kami meminta mereka melakukan pembayaran supaya dilepaskan dari sekatan ke luar negara, mereka mampu untuk lakukan pembayaran tersebut,” kata Mastura.
Peminjam PTPTN dinasihatkan untuk melangsaikan tunggakan pembayaran pinjaman bagi mengelak sekatan di lapangan terbang atau pintu sempadan negara. Sekiranya terdapat tunggakan, mereka perlu melakukan pembayaran atau berunding dengan pihak PTPTN 7 hari sebelum ke luar negara.
Anda akan didakwa di mahkamah
Pihak PTPTN akan mengeluarkan dua notis peringatan bayaran balik dan juga notis tuntutan sekiranya anda tidak membuat bayaran balik. Sekiranya anda masih tidak melakukan pembayaran atau melakukan sebarang rundingan, PTPTN akan mendakwa anda di mahkamah. Sehingga tarikh 29 Februari 2016, terdapat 115,279 peminjam PTPTN yang telah didakwa di mahkamah dengan jumlah pinjaman terunggak sebanyak RM9.8juta.
Baca juga: Urus Hutang Anda Secara Percuma Bersama AKPK
Menghadapi masalah melakukan pembayaran balik?
Ujrah
Sekiranya anda masih belum bertukar kepada Ujrah, lakukan pertukaran tersebut. Semua pinjaman yang telah diluluskan selepas Disember 2008 adalah dibawah polisi Ujrah, tetapi bagi peminjam sebelum tarikh tersebut mereka dibawah polisi konvensional. Kadar faedah bagi polisi konvensional adalah sebanyak 3%, manakala kadar faedah polisi Ujrah ialah 1%.
“Jika peminjam melakukan pembayaran secara berterusan, mereka boleh mendapat penjimatan sebanyak 49% untuk kos pembayaran balik pinjaman mereka dengan pertukaran ke polisi Ujrah.” kata Mastura. Walaupun potongan gaji bagi pembayaran balik dibawah polisi Ujrah tidak wajib tetapi ia sangat digalakkan.
Berunding Dengan Pihak PTPTN
“Kami terbuka kepada perundingan. Sekiranya peminjam menghadapi masalah dengan komitmen kewangan yang banyak, mereka boleh hadir ke PTPTN untuk penstrukturan atau penjadualan semula bayaran balik pinjaman mereka. Kami menawarkan jumlah bayaran balik serendah RM50 sebulan” kongsi Mastura.
Pihak PTPTN juga memberi penangguhan pembayaran balik selama 2 tahun, tetapi dalam jangka masa 6 bulan bagi setiap permohonan pengangguhan yang dilakukan.
Sekiranya peminjam mula melakukan pembayaran 6 bulan selepas tamat pengajian, mereka boleh mendapat penjimatan kerana dalam jangka masa 6 bulan tersebut pembayaran balik tidak dikenakan kadar faedah. Maka mereka boleh mengurangkan pembayaran balik kerana baki yang akan dikenakan kadar faedah 1% selepas 6 bulan telah berkurangan.
Mastura menasihati peminjam PTPTN untuk melakukan pembayaran balik pinjaman kerana dana diperlukan untuk generasi masa depan. Pihak PTPTN menerima permohonan lebih kurang 200,000 peminjam setiap tahun, maka kitaran wang positif amat penting untuk menyediakan dana pendidikan yang mapan. Mastura memberi peringatan kepada peminjam PTPTN bahawa “adik-beradik ataupun anak anda boleh tergolong dalam generasi masa depan tersebut”.
Ingin ketahui bagaimana anda boleh berjimat? Bandingkan kad kredit terbaik secara percuma di CompareHero.my dan ambil kesempatan daripada diskaun dan rebat tunai untuk jimat lebih wang apabila anda berbelanja.
Baca juga: Tindakan Terhadap Penghutang Yang Tidak Mampu Bayar Pinjaman Bank
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The Ultimate Guide To ETF in Malaysia: How Do they work?
- By CompareHero.my
Exchange Traded Funds (ETF) are a great way to diversify your investments. To get a better understanding of ETFs, CompareHero.my spoke to experts from Affin Hwang Asset Management.
Though Exchange Traded Funds (ETFs) are not new, they have grown to be highly favourable among investors, sustaining their growth over the past decade, in part due to a well-developed ecosystem.
Since its debut in the early 1990s, the global market for ETFs has seen tremendous growth, with assets under management expected to exceed RM36.9 trillion by 2022, according to Bursa Malaysia.
This rise and growth is due to the many advantages ETFs have over other traditional investment products such as easy accessibility, low-cost diversification and trading opportunities.
Related: #InvestInsights: What Should You Invest in During a Recession? An Expert Weighs In
Contents
Are ETFs and stocks the same? Not exactly. Though they aren’t entirely different, think of ETFs as a basket of stocks.
What is an Exchange Traded Fund and how does it work?
According to Bursa Malaysia, ETF is an open-ended fund listed or traded on a stock exchange. It tracks an index representing a basket of securities, bonds, commodities, and a variety of other assets.
With just a single transaction, investors can potentially gain instant exposure to any market, region, sector, asset class, or investment strategy.
Experts from Affin Hwang Asset Management say ETFs try to replicate a specific index as closely as possible. Their defining feature is explained in their name, “exchange-traded, ” which simply means they can be bought and sold like normal stocks on a stock exchange.
For example, the S&P 500 Index tracks the performance of the 500 large-cap listed-companies. So if an investor wants exposure to the Index, he will need to buy all 500 of the component stocks, and this would require a very high initial investment amount. As of August, 31, 2020, the S&P 500 had an average 10-year annual return of 12.66%.
ETFs are commonly known as a hybrid offering that combines the best features of unit trust funds, and stocks.
A cost-efficient and convenient method of gaining access to the Index, experts at Affin Hwang say, is to invest in a single ETF that tracks the performance of the S&P 500 Index. That way, the investor makes a single trade, and is only charged one transaction cost to have exposure to 500 stocks.
Easy access and diversification are some of the commonly cited benefits of ETFs.
What are the benefits of ETFs?
1. Easy access
Get exposure to a basket of assets through a single trade
2. Cost efficiency
Have exposure to multiple assets through a single transaction
3. Hassle-free investing
Gain exposure to foreign markets through the domestic stock exchange
Related: #InvestInsights – What Are The Advantages of Investing In REITs?
What are the pros and cons of Exchange Traded Funds?
Through ETFs, investors can gain access to a wide range of underlying assets including equities, fixed income instruments, and commodities. ETFs also provide the opportunity to investors to gain geographical reach, i.e. exposure for foreign listed assets, according to experts from Affin Hwang Asset Management.
Some of the key benefits an ETF can offer to investors are:
1. Cost efficient solutions
Using the S&P 500 Index as an example, an investor would need to incur a transaction cost for each transaction, which equates to 500 individual transaction costs, as opposed to only one if the investor invested in an ETF.
2. Hassle-free solution
Unlike physical gold that needs a physical storage space, ETFs are managed by ETF managers who would need to be responsible for the logistics, storage, and security of the asset under the ETF, like gold for example. An investor just needs to merely transact their gold ownership on the stock exchange.
3. Diversified exposure
ETFs can give investors diversified exposure through a single transaction. Using the TradePlus S&P New China Tracker ETF as an example, which tracks the performance of the New China economy through companies that are listed on both the Hong Kong, and the U.S. stock exchange.
An investor wanting to replicate the index would be required to use the services of a foreign broker to buy into stocks that are quoted in both HK Dollar, and the U.S. dollar. They would also need to consider the time difference as well, as different markets open at different hours.
However, by investing in the TradePlus S&P New China Tracker ETF, for example, an investor could be relieved of any concerns as they could trade during Bursa’s trading hours, and also trade in MYR (and also USD, for those looking to invest in foreign currency. This ETF is the first and only dual currency listed ETF on Bursa).
4. Start investing with a smaller investment amount
Because ETFs are pooled investments, excerpts at Affin Hwang say, investors can gain access to a basket of assets at a fraction of the cost. Thus, ETFs enable investors to mitigate their concentration risk even with a smaller investment overlay.
Types of ETF
ETFs are index trackers, meaning they try to replicate a specific index as closely as possible. Their defining feature is explained in their name, “exchange-traded” means they can be bought and sold like normal stocks on a stock exchange.
And because ETFs are structured as a collective investment scheme, it pools investors’ investments together to enable the ETF to buy into the assets that it tracks.
Let’s take the S&P 500 Index as an example. The Index tracks the performance of 500 larger companies listed on the US exchange. If an investor wants exposure to the Index, he will need to buy all 500 of the component stocks, and this would require a very high initial investment amount.
However, by pooling the investors’ assets together, initial investments can be lowered as investors would be able to gain fractional exposure to the index at a fraction of the price.
As such, ETFs are commonly known as a hybrid offering that combines the best features of Unit Trust Funds, and Stocks.
For a cost efficient, and convenient method of gaining access to the Index, one can invest in a single ETF that tracks the performance of the S&P 500 Index. This way, the investor makes a single trade thus is only charged 1 transaction cost to have exposure to 500 stocks.
| Underlying Assets | Strategy | Remarks |
| Equities – Growth |
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| Equities – Smart Beta |
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| Commodity (Gold) |
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Like what you hear? Well if you are interested in more investing tips and tricks, check our investing section on our website.
Disclaimer: Neither CompareHero.my nor the content on it is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. The content on CompareHero.my is for general information purposes only and is not intended to be personalised investment advice or a solicitation for the purchase or sale of securities.
Compargo Malaysia Sdn. Bhd. and/or its affiliates cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. CompareHero.my may receive compensation from the brands or services mentioned on this website.
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4 Ways Work-Related Stress Can Cost You Money
- By CompareHero.my
- May 10, 2021
Most of us are working from home these days. At times, the boundaries between work and home become blurred, and your to-do list grows longer regardless of how many tasks you’ve completed.
That’s when the anxiety and worries creep in. Besides affecting your health, stress is also a hazard to your bank account. Here are four ways that stress can cost you money. Beware of them.
Contents
1. Stress eating
According to studies, some people overeat when they feel stressed.
According to psychologist Susan Albers (from Cleveland Clinic, a U.S. non-profit academic medical centre), some people overeat when they feel stressed.
“When you’re feeling stressed, your body sends out cortisol, known as the stress hormone. Cortisol can make you crave sugary, salty and fatty foods, because your brain thinks it needs fuel to fight whatever threat is causing the stress,” Albers revealed.
So you’ll most likely want to gobble up endless cookies, kuih or chips when things feel unbearable at work. These snacks may seem cheap at first, but they add up in the long run.
Estimated snack prices: Cookies (from RM3), kuih (from RM6), and potato chips (RM2 – RM20++)
It’s best to enjoy these in moderation.
Related: 4 Practical Ways To Afford Groceries In Malaysia
2. Smoking or vaping
For some people, smoking and vaping are like ‘self-medication’ to ease stress.
Some people say smoking and vaping are like ‘self-medication’ to ease feelings of stress. However, according to mentalhealth.org, smoking actually increases anxiety and tension.
The same article explained that cigarettes contain nicotine, a mood altering chemical that stimulates the release of dopamine in your brain. Dopamine causes feelings of pleasure and relaxation, a sensation the body craves. However, during these feelings of perceived relaxation, the body is actually experiencing increased stress. Your blood pressure and heart rate will increase, muscles become tense, and less oxygen is available to the body and brain.
As vape also contains nicotine, you are likely to experience the same side effects as cigarettes.
Estimated cigarette prices: RM12 – RM17.40
Estimated vape prices: From RM35
3. Using alcohol to cope
Malaysia’s alcohol excise duty is the second-highest in the world, so drinking can be a costly activity.
It’s 6pm, and you think having few alcoholic drinks can help you de-stress after a long day. That’s only true to a certain extent. According to medical portal healthline.com, drinking may help take your mind off of your troubles at first.
However, once you start drinking, you can build a tolerance to the de-stressing effects of beer, wine, vodka, and other alcoholic beverages. Then you’ll need more and more drinks to ‘unwind’. Over time, consuming too much alcohol can lead to blackouts, memory loss, and liver damage.
Additionally, Malaysia’s alcohol excise duty, at RM175 per litre of alcohol by volume, is also the second-highest in the world. So besides affecting your health, you’ll be spending a fortune on expensive beverages
Estimated alcohol prices: From RM6.50 (for the cheapest can of beer) to hundreds of ringgit (for premium booze).
Related: 11 Practical Hacks To Reduce Your Financial Burden And Stress
4. Shopping sprees
Impulse buys can consume your savings quickly and put you in debt.
Ever used an online shopping app after a tense meeting? Yeah, we have all been through some form of ‘retail therapy’ too.
Something beautiful catches your eye online, or there might be a flash sale for the items you like. You think treating yourself is fine after a tough time at work, so before you know it, you have selected the ‘Buy Now’ button.
The downside of this is that impulse buys can eat into your savings, and you could be on a tight budget for the rest of the month. Worse, you may also find yourself deep in credit card debt.
Cost of shopping sprees: From RM19 (collectible minifigures) to thousands of ringgit (branded apparel and accessories).
What you should do instead
Having someone to talk to can also help you de-stress.
- Exercise: When you work out, your body will release endorphins. This chemical can improve your mood and act as a natural painkiller.
- Enjoy calming remedies: Drinking green tea can help lower stress and anxiety by increasing your serotonin levels. You can also try other calming herbal remedies such as chamomile tea and lavender essential oil.
- Reduce caffeine intake: Drinking too much coffee, tea, or energy drinks can cause anxiety. So if you notice that caffeine makes you jittery, try cutting back.
- Spend time with friends and family: Social support from your loved ones can help you through tough times. Having someone to talk to can also help you de-stress.
- Laugh: Watch some comedy series. Hang out with friends who make you laugh. Laughter can relieve tension by relaxing your muscles, as well as improve your immune system and mood.
- Get professional help: It’s alright to consult a psychologist or counsellor, especially. There are now many affordable mental health service providers in Malaysia. We should take care of our mental health, especially during this lockdown period.
Related: #DigitalCareers: Achieving Work-Life Balance in the New Normal
Another way to de-stress is by watching your bank account grow. Having sizable savings means you won’t have to worry about next month’s bills. You can also sleep soundly knowing that you are on your way to financial freedom.
You can achieve all these by lowering your daily expenses with a credit card that can earn up to 30% cashback. Apply for one with us today and you could be rewarded with prizes and cash!
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Build Your Children’s Education Fund with These Savings Options
- By CompareHero.my
- May 7, 2021
Worried that you won’t be able to afford the cost of education for your child with the current economic situation and the rising cost of living? Whether it’s locally or abroad, plan ahead for your child’s education with these saving options.
A recent survey titled The Value of Education – an independent consumer research study into global education trends, commissioned by HSBC – reveals that Malaysian parents spending an average of US$25,479 (RM107,920) on their child’s education, from primary school up to university undergraduate level.
Another recent survey ranked Malaysia as the fifth most expensive country to get a higher education and claims parents in Malaysia spend more than half their salary to pay for their children’s higher education. The survey looked into the income to cost of education ratio and found that Malaysians apparently spend 55% of their salary to pay for their child to go to university.
But don’t be alarmed, you don’t have to be part of that statistic. Firstly, you will need to have an estimate of the costs for your child’s education which should also take inflation into account during the investment or saving period. With the estimated amount as a guide, you can then set a target amount and decide how best to achieve it. There are various education savings options, but here are the best methods to save for your child’s higher education.
Contents
Insurance with education investment
Although most of us usually associate insurance with coverage whether it is for life, medical and more, you can also choose an insurance linked with investment for your child’s education. It’s a great combo because it provides investment and protection for your child. Most insurance companies like Prudential Malaysia, AIA Malaysia, and even banks will offer you these products. There are two types of education insurance:
Endowment policy
- An endowment policy combines a savings component with protection coverage.
- Endowment policies can either be participating or non-participating.
- Non-participating policies do not participate in the life insurance fund’s profits but all insurance benefits are fully guaranteed.
- Participating policies have a portion of insurance benefits guaranteed, but the total amount of benefits at maturity is not guaranteed because it depends on the insurance company’s life insurance fund’s performance.
Investment-linked policy
- An investment-linked policy combines the elements of investment and protection based on your requirement as the policy owner.
- Offers flexibility as you can increase or top-up your monthly premium contribution as your income improves.
- An investment-linked policy will allow you to choose the type of funds your money will be invested in. However, there are risks involved and there will be no guarantee on the returns, which can be higher or lower than the estimated amount.
Before you choose an education insurance policy, here are some pointers:
- Consider how much money you want to set aside for your child’s education.
- Make sure that you can afford to pay the premium because it will be a long-term commitment.
- Choose a policy that gives you flexibility so you can gradually increase the savings in the future.
Finally, once you have chosen a policy, you need to monitor it to ensure that you are on your way to reaching your goal amount. Actual returns declared by the insurance company may differ from the initial estimate due to changes in financial markets. You can also claim tax relief of up to RM3,000 if you get your child education insurance.
Education savings account
National Education Savings Scheme
Skim Simpanan Pendidikan Negara (SSPN) is an educational savings scheme designed by PTPTN to help Malaysians save for higher education. This scheme is in line with the Shariah concept of Wakalah Bil Istithmar. There are two options which are the SSPN-i and the SSPN-i plus. The main difference between the two account is the takaful coverage included in SSPN-i Plus account. This are 3 types of accounts for SSPN-i account:
Category 1:
Account opened by the parent or legal guardian for beneficiary aged 1 day up to 29 years old.
Category 2:
Malaysian citizen aged 18 and up to 29 years old has an option to open individual account or to be beneficiary for an account opened by their parent or legal guardian.
Category 3 (Individual Account):
Malaysian citizen aged 29 years old and above are required to open an individual account.
Aside from saving for your child’s education, you will also get to enjoy some benefits with this option. First, there’s the tax relief of RM6,000 per year. Free takaful coverage will also be available for depositors who have savings of RM1,000 and above and also competitive dividends for the savings that is exempted from income tax.
Another benefit is the eligibility to apply for PTPTN financing, as without an SSPN-i or SSPN-i Plus account, your child will not be able to apply for PTPTN financing.
On top of all of this, families with a household income that is lower than RM4,000 will be eligible for the matching grant scheme when their child is accepted and enrolled into higher learning institutions. The matching grant of up to RM10,000 will be determined by the savings amount and duration. You can open an SSPN-i or SSPN-i Plus account at PTPTN’s 73 offices and branches nationwide. For a list of PTPTN branches across the country, find out on here. The documents needed to open an account are:
- Copy of the applicant’s MyKad/ Police or Military Card
- Copy of the child’s Birth Certificate/ MyKid/ MyKad
- Letter of Declaration or Certificate of Adoption (for parents who open an account for adopted child under their legal care).
Investments
Amanah Saham Didik (ASD)
If you hold the Bumiputera status, do consider investing in ASD which was launched in 2001. It is suitable to provide future financial needs for education expenses. ASD is managed by ASNB, which is a wholly owned subsidiary company of Permodalan Nasional Berhad (PNB). ASNB was established on 22 May 1979, to manage the 11 funds launched by PNB. The dividend for ASD from 2016 was 6.3%. If you are interested, the price per unit is RM1.00
Eligibility for ASD
- Malaysian Bumiputera
- 18 years old and above for Akaun Dewasa
- 6 months – 18 years old will need a guardian for Akaun Bijak
Unit Trust
Aside from ASD, you can also invest in unit trust funds to grow your child’s education fund. Unit trust is a collective investment where your money will be pooled with other investors and that amount of money is known as fund’s assets. The funds will be invested into a portfolio of diversified assets and then managed by a fund manager. When you invest in unit trust, you buy units and depending on your budget, you can decide how many units you want to start off with initially, then buy more units in the future. For more information on investment, read more here.
Make it a team effort
As all of this effort is for your child’s benefit, get them involved in saving for their education. When you are going through your investments for their education fund, include them and make them aware of the challenges and commitment required to save for their education. You can also let them contribute some of their allowance to their education fund. Aside from that, you can also encourage grandparents or relatives who shower your children with gifts to consider opting for a cash contribution towards their education fund instead.
There are pro’s and con’s to each savings option (do we want to do another article on pros/cons? That way we can allude to say that look out for our next article on the pros/cons), so weigh your options properly along with your risk appetite and affordability. Remember to start saving for your child’s education as early as possible as it is a long-term goal and to take advantage of the power of compound interest.
Related: 7 Tips to Save Money for Your Child’s Education in Malaysia
