The Financial Doctor Show S01E05: Planning for Your Children’s Higher Education


Hi I’m Nik. Today I’m going to talk on Education Planning using my own example. My daughter is 10 & going to college in 8 years. My assumptions: (Going to a local private college) (Education costs increase with inflation) (When she goes to college) (In 8 years time) (Education fees in 8 years time) That’s a lot of money!! I have some savings & investments. E.g. ASB RM15,000 Assuming 7% investment returns… when she’s 18 and ready to go to college… I only have RM25,000 🙁 This means I have a HUGE shortfall of RM231,000 (in future money) What do I need to do to make sure… I have enough for her education. I can invest a lump sum of RM135,000 OR annual savings of RM21,000 OR monthly savings of RM1,800 When you plan for your children’s education… you have to take into account inflation. So that you have the right figure for the time when your child goes for higher education. On top of that, when you look at education planning…. You have to look at it holistically. And with your other life priorities. E.g. Retirement Planning, Hajj Planning, Buying Property Many Malaysians retire at the same time their children go to college/uni. If you don’t plan well, you end up using your EPF money (which is meant primarily for your own retirement) This happens to many Malaysians. You need to talk to a licensed financial planner. So you can see things holistically. Not just taking into consideration inflation BUT also your other life priorities. You need to see where & how to place your money. What’s your first priority? Education Planning? Hajj Planning? Retirement Planning? Learn how to prioritize for this & know how much for each life priority. The same goes for planning for retirement or Hajj planning. You still need to look at it holistically. Please do talk to a licensed financial planner. You will be able to plan properly for each of your life priorities. Til we meet again! Thank you for listening!

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