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Cost is always a dominant concern when planning for education. Attending a local
university or college will definitely be cheaper than going overseas. Look at local
colleges as an alternative. In Malaysia, there are various options to choose from
now as compared to many years ago.
It is no longer a necessity to pursue higher education abroad. Many courses that
were previously not available are now available. There are also options such as home
study programs and twinning programs which can save you a lot of money.
For parents thinking of overseas schooling, weigh carefully the true benefits of
a foreign university versus a cost-effective local one.
Apart from the tuition fees, studying locally is certainly more affordable in terms
of travel and living expenses. For children pursuing studies abroad, long-distance
phone bills, air tickets, books, rent, food, clothing, insurance and pocket money
could add up to a mountainous debt.
Do you select the university first or look at the fees and let that be a guide as
to where to go. Generally cash-strapped parents would look at how much different
schools charge while those who can afford would tend to go to top universities regardless
of the fees.
Parents should analyze their own financial standing. Be realistic and know your limit.
If you have not saved a penny, ask yourself - is it worth building a huge debt just
to be educated at a world famous university? This is especially so for many who are
already under considerable financial pressure with other commitments.
Cost analysis is particularly critical for parents with more than one child to support.
Construct a list of all possible options available. Obtain brochures and other information
from various institutions and compare them. You can even talk to the respective education
counselors for information and advise.
Duration is another factor which should be considered when planning for children's
education. How many years from now before you child begins university? You may heave
a big sigh of relief if you have a six-year old child who wonít be ready for at least
another ten years but what about those whose children are already in the final year
of their secondary schooling? The longer the period before time to university, the
more time you have to save - your investment or savings strategy should be different
for different time frames.
Unlike most other investment goals, college education often needs funding over a
period of a few years (normally four years). Longer periods due to the course type
or various circumstances is likely to require an increase in the cost of funding.
Are you prepared for that?
Time is gold and can have a dramatic impact on your education goal. Plan! The earlier
you start planning, the better the chances for your children to make it to graduation
day. A small amount of RM100 saved every week can do wonders over a 10-year period.
There is a need to create a plan to finance your children's education. Despite possible
hiccups, you still want the best education for your children without going bankrupt.
One should not just rely on loans or scholarships.
Everyone is vying for such offers. The competition is stiff and your children may
not be lucky enough to be offered a scholarship. You could get a loan but remember,
you still have to pay-off the loan over a period of years. Many graduates start their
working life with enormous debts on their shoulders.
Congratulate yourself if you have started your own savings plan. Figure out how much
have you saved and the amount still needed. For those who have not saved anything
at all, it is never too late to be smart.
Those who do not have enough funds will inevitably seek assistance elsewhere.
Remember financial assistance is not only for the poor. Assistance for deserving
students can be in the form of scholarships, grants, and loan programs. There are
different types of financial aid, some are available only to a certain groups of
people. Different scholarship programs have different academic requirements.
Check with your employers whether they offer any loan or scholarships for employees'
children. Some big companies offer education programs for their long-term employees.
Study all conditions before applying.
In order to reduce your financial burden, you may expect your children to work part-time
to partially off-set the expenses while at college. Many students studying abroad
work during summer holidays to help pay their living expenses. However, there are
concerns that the part-time work could affect your children's study progress.
Besides savings in bank accounts, spread your money by investing into an array of
instruments. Explore the variety of investment options available. Choose options
that fit your investment preferences. Parents should consider managed funds as they
are low risk and could offer attractive returns over a longer period of time.
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