Are you prepared for Uni fees?

I am not about to introduce you to an insurance plan, but to share with you the reality of education cost.

All of us probably can hang loose because school fees for the kids does not bother us as it is almost free from Primary school to College.

Yesterday when I checked my bank account, and noticed almost $4000 less.

Checked the detail, there is a $3878 deducted for my daughter's SMU fees, well, I was not told in advance by her, she forgotten to tell me. Anyway, I am also expecting it myself.

SMU course fee a year is about $7500, and I suppose with 7% GST, deducted in 2 terms.

Last year was her first year, aside from course fee, purchase of laptop as well. That cost slightly above $10,000 in total then.

So you can imagine the Uni fees will be something most of us did not really bother, partly also because we can use our CPF as well. In the industry, people use to put an inflation of 6% on it, so the longer it is due, the fee will be even higher in latter years. If you want to know how much it is, use a financial calculator and set the interest and term and compute the future value and you will know how much it will be.

Some will calculate and think use cash is better because CPF interest is higher, so hang loose with that and use cash. And some parents will think why let the kid start life with debt to pay after the Uni.

Whichever way, what I am trying to share is beware of such cost as most of our children are marching towards University, before you realise it.