Even families who are better off financially need to plan for their children’s education early as annual inflation rates are hard to predict. Families who want their children to pursue a tertiary education in the United States, United Kingdom and Australia, can expect to fork out hefty amounts of cash for at least three years.
Twenty years ago, when the ringgit was at its weakest, the cost of pursuing an undergraduate degree in a university in the United Kingdom totalled approximately RM20,000 per year for tuition fees. Today, after factoring in yearly fee increases, inflation and the current exchange rate, the same course fees could range from RM55,000 to RM194,555 for a medical degree. If your child is interested in studying in the United States, be prepared to budget for at least RM266,545 to cover tuition fees and the cost of living. Is Australia your top pick? You’ll need to put aside up to RM100,000 for fees, and RM1,028 per week for living expenses.
What financial solutions are there to provide for your child’s education? Should you have to remortgage your home to fund their studies? Or perhaps personal loans are the way to go? Here are some options to finance your child’s education: