A guide to education planning & overseas university costs

A parent's guide to school fees in Singapore & overseas education costs

As parents, we want to provide our children with the best possible opportunities in life, and education is undoubtedly a cornerstone of their future success. However, the rising cost of education, both in Singapore and abroad, can be a daunting prospect. 

This is where careful wealth planning comes into play. By integrating education fees into your overall financial strategy, you can ensure you're adequately prepared to support your child's academic journey. This article aims to simplify the intricacies of school fees planning and help you navigate the expenses associated with overseas university education.

The rising cost of education

The cost of education has been steadily climbing, making it crucial for parents to plan ahead. In Singapore, while public schools offer affordable education for citizens, private and international schools come with significantly higher fees. For expatriate families, even local school fees can be a considerable expense, with non-ASEAN students at a local secondary school paying approximately $1,900 per month according to the latest figures from the Ministry of Education¹. This is comparatively lower than the fees for private or international schools, which have a median fee range of around $2,300 to $2,500 a month with many schools being much higher²³.

Overseas university education presents another set of financial challenges. Popular destinations like the United States, United Kingdom, and Australia have seen substantial increases in tuition fees in recent years. Coupled with living expenses, accommodation, and travel costs, the overall expenditure can be significant.

School fees planning: Starting early

The earlier you start planning for your child's education, the better. Starting early allows you to leverage the power of compounding and gives your investments more time to grow. There are various options available to help you save for tuition fees:

• Investment Portfolios: A diversified investment portfolio can help you achieve your savings goals faster. Consider a mix of equities, bonds, and other asset classes to balance risk and return.
• Regular Savings: Even small, consistent contributions to a dedicated savings account can accumulate significantly over time.
• Education Loans: Loans can also be a valuable tool to bridge the gap between your savings and the cost of overseas education. However, it is advisable to speak to a qualified financial consultant before making a commitment.

The cost of overseas university education: A breakdown

Sending your child to university overseas involves various expenses beyond tuition fees. Here's a breakdown of the typical education costs:

• Tuition Fees: These vary significantly depending on the university, course, and country. For example, in the US, international tuition fees for undergraduate programs generally range from US$30,780 to US$43,350 per year, depending on the university and degree. (College Board, Trends in Higher Education Series: Trends in College Pricing and Student Aid, 2024)
• Accommodation: Options range from university dormitories to private apartments, with costs varying accordingly.
• Living Expenses: This includes food, transportation, books, entertainment, and personal expenses.
• Travel: Factor in the cost of flights, visa applications, and transportation within the country.
• Insurance: Health insurance, travel insurance, and personal liability insurance are essential for overseas students.

Investing in your child's future

Planning for your child's education is an investment in their future. It’s about empowering them to pursue their dreams and reach their full potential. However, navigating the complexities of education planning, investment options, and loan strategies can be overwhelming. This is where seeking professional guidance from financial advisory services can be invaluable.

Take proactive steps today to secure your children’s educational future. Don't let the rising costs of overseas universities and financial uncertainties hinder their aspirations. Start planning early, explore your options, and consider seeking expert advice from highly experienced advisers at SJP to pave the way for a brighter future filled with opportunities.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

Sources:

¹Revised School Fees for Non-Citizens in Government and Government-Aided Schools for 2024 to 2026, Ministry of Education, Press Release, 18 October 2023
²International school fees in Singapore: What to expect?, School Selector, 4 July 2024
³An overview of Singapore International Schools, ExpatDen, 5 February 2024