Having a child means you need to start planning your expenses. In countries like Malaysia, two of the most expensive areas that you need to consider is in healthcare and education. While healthcare is usually covered by the company you are working for, education might be something you need to put in some extra efforts.
Saving for your child’s education
Make no mistake about it, education in Malaysia can be quite expensive. This is most evident especially if you are planning to give your child the best education in a private institution. The question really is how can you start saving and how does this work?
Start with a small amount
There is no short cut to saving. You must start from a small amount. If it means putting away RM50 per month from the day your child is born, then so be it. You can increase this amount as your child grows older and when you can afford more.
One of the major things that you can do is to make away with savings for entertainment or vacations. You can take cheaper trips and use the additional amount for this savings. At the end of the day, it might not amount to much, but it’s a good start.
Trick: Use direct debit in your bank account. This way, you will never forget.
In terms of education systems, there are several establishments you can consider:
- Public schools – this is the most straightforward and easy to apply. In fact, it is the cheapest as your child will be studying in a government-funded school. They start from Year 1 all the way till Secondary 6. If your child is good, they could even continue up to tertiary education
- Semi-public schools – Known as vernacular schools, you have to pay a small amount for school fees as these institutions are semi-sponsored by the government.
- Private Schools – They practice government curriculum but the fees are quite high.
- International Schools – The most expensive of the lot. They adopt British, American or other countries’ curriculum.
Look for subsidies
There are a lot of subsidies that are available. scholarships are usually offered by corporate companies and private institutes of higher learning normally offering them at the tertiary level. However, you should take note of those like PTPTN which can offer low-rate education loans.
Start investing in education
A lot of insurance companies now offer education packages for families. What you basically do is to buy a policy in this area with the company which will provide your child with a certain amount of money when they reach the age to go into university. This will give you a good headstart so that you wont’ be tied for cash flow when the time comes.