Here's A Step-By-Step Guide To Start Planning For Your Children's Education Fund
Preparing for your child's future is a marathon, but with the right plan, you'll cross the finish line with ease.
Published for PTPTN, 10 Oct 2024, 04:03 PM
It's never too early (or too late) to start thinking about your child's future education
While the cost of tertiary education continues to rise, parents who save consistently over the years can ensure their children get to pursue their ambitions when the time comes.
If you're not sure how or where to start saving for your child's education fund, don't worry. We've gotchu covered!
STEP 1: Project how much you need to save
First things first, do your research! Whether you're considering local or overseas education, public or private institutions, it's crucial to know the costs. Use online calculators to estimate how much tuition will be by the time your child turns 18 (don't forget inflation!). Once you have an estimated figure, you'll know what you're working towards and can plan accordingly.
Pro tip: Factor in accommodation, books, and living expenses, especially for overseas studies!
STEP 2: Start saving early on
The earlier, the better! Starting small is okay — sikit-sikit lama-lama jadi bukit. The younger your child is when you begin, the more time you have to let compound interest do its magic. Even if you can only put aside a small amount each month, it will add up over time.
Pro tip: And as this becomes a habit, you can gradually increase the amount you set aside.
STEP 3: Develop a realistic savings plan and automate it
It's one thing to say you'll save, and another to actually do it! Set a realistic goal based on your current finances and break it down into monthly savings. Automating your contributions is key. By setting up an automatic deduction, you'll ensure that you stay on track without needing to remember to save each month.
Pro tip: Automating your savings once your paycheck comes in helps you avoid the temptation to spend money elsewhere!
STEP 4: Review your progress
Life changes, and so does your financial situation. Make it a point to review your savings plan at least once a year. If you get a promotion or a bonus, consider increasing your monthly contributions to reach your goal faster. Plus, checking in keeps you motivated!
Pro tip: If you need help, a professional financial advisor can help review your progress and suggest changes if necessary.
STEP 5: Explore investment options
If you have extra savings, investing can help accelerate the growth of your child's education fund. Rather than relying solely on a regular savings account, consider diversifying into low to moderate-risk investments, such as unit trusts or education-specific savings plans like Skim Simpanan Pendidikan Nasional (Simpan SSPN). These savings instruments offer a lot of benefits such as competitive dividend, tax relief up to RM8,000 per year, matching grant up to RM10,000 for one eligible family and much more.
Pro tip: Keep an eye out for extra incentives and rewards from savings plans like Simpan SSPN.
This October, you can make the most of the National Higher Education Fund Corporation (PTPTN)'s 'Bulan Menabung Simpan SSPN (BMS) 2024'
One of the best ways to save for your child's education is through Simpan SSPN, which offers competitive dividends, tax relief, and access to PTPTN student loans when needed. It's a smart way to plan for your child's future while benefiting from additional financial perks.
In conjunction with World Savings Day on 31 October, PTPTN has launched the 'Bulan Menabung Simpan SSPN (BMS) 2024' campaign, giving parents the perfect opportunity to start saving and teach their kids about financial responsibility.
With the tagline 'Jom Jadi Superhero Anak Anda', the campaign is all about inspiring parents to take the lead in their children's financial journey. It's not just about savings — it's about becoming a role model for your kids!
But that's not all — there's something for everyone to bring home!
By participating in the campaign, you could receive exclusive BMS merch, including shopping bags, laptop backpack, cute pens, food containers, and a limited-edition coin bank — perfect keepsakes to celebrate your savings journey.
To make it even more exciting, the campaign will conclude with a special event at Paradigm Mall, Selangor from 25 to 27 October. It's packed with activities for both parents and kids, from colouring competitions, Simpan SSPN Got Talents and many more exciting activities.
Plus, there's a chance to win prizes in fun games like, Snap and Win, memory challenges, Meet & Greet With Didi & Friends and P&T Simpan SSPN, and much more.
Don't miss the chance, take part in fun challenges, and bond with your family while learning about financial planning
Parents who open an Simpan SSPN account during the event will also get exclusive gifts like computer bags, pens, lunch boxes, and more — but stocks are limited, so be quick!
The excitement doesn't stop there! From now until 31 October, you can compete for a chance to win a limited-edition coin bank signed by Dato' Sri Siti Nurhaliza just by depositing into your Simpan SSPN account. The top 10 depositors with the highest savers will be eligible for this exclusive prize!
Whatchu waiting for? Don't miss out on this exciting opportunity to kickstart your child's education fund while enjoying a weekend of fun and learning!
For more details, visit PTPTN’s official page.
