Sandwich Generation Part 2: Preparing for Your Children’s Education


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As with all parents, John loves his two beautiful children dearly. To him, his greatest wish is for them to have a bright future. To achieve this, it is essential that he provides them with the best education. Like many other parents, he sees education as the best gifts for his children.

Even with a limited budget, he knows it is essential to prioritise planning for their education. Nothing is more important than being financially prepared for his children’s education fees.

What is the cost of education in Singapore?

In today’s society, many will consider having a university education to be essential. As with many parents, it is John’s dream to witness his two children receiving their degree scroll, dressed in their graduation gown. 

However, tertiary education does not come cheap. The annual tuition fee, depending on the course, for a local university ranges from a little over  S$15,000 to S$140,000. Also, according to SmartWealth, over the past two decades, Singapore seen an average annual education inflation rate of 2.86%.

Should your child choose to pursue an overseas university education, the education cost will be costlier. For example, tuition fees in Australia – one of the most popular destinations for Singapore students, starts from AU$19,500 yearly in tuition fees in Melbourne, depending on the course and university you go for. This is notwithstanding other expenses such as flights, living and accommodation expenses.

What can I do?

Well, while many have the intention to fund their children’s education, small and ad hoc saving is insufficient. It is important to have a financial plan!

There are two main ways to approach this:

Option 1: Make your savings work for you, for your kids’ education

Put your money into financial plans that have higher returns compared to bank savings accounts while incurring lower risks than investments. This makes it the go-to option for most parents who are looking for a relatively low-risk option to stash their savings.

Option 2: Invest your education savings through a financial advisor

On the other hand, if you have a higher risk tolerance, you can consider investing with a financial advisor. Through investments, you can increase your chances of getting a higher return. However, as with all investments, the returns are not guaranteed. You have to understand the risks involved and be comfortable with the risk factor.


Faced with the financial pressure to support both the young children and elderly parents, it is definitely not easy to set aside money for an endowment plan.

However, it is essential that you make the right choice for your children. As seen in John’s example, it definitely helps if you start early. 

The best gift from a parent to a child is the gift of education. A small sacrifice will free your child from being crippled by student debt. 

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Read more:

Six Factors to Take Note of Before Taking Up a Personal Accident Plan

Escaping The Squeeze of The Sandwich Generation: Three Important Rules

Guide To Pet Costs and Pet Insurance in Singapore


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