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
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.