Parents, do we have enough savings for our children’s future studies? How about SSPN?

Parents, do we have enough savings for our children’s future studies? How about SSPN?

Higher education could be expensive, could we afford it in the future?

How much do we need for a degree in a local private university? The costs vary but generally, it could start with RM35,000 or higher.

For SEGI University, its Bachelor of Accounting and Finance would be around RM37,000 for the whole degree (online studies). It takes 3 years. If we take up the Bachelor of Information Technology, it would be around RM40,000 (online studies) This takes 3 years too. Meanwhile, Bachelor of Electrical and Electronics Engineering would be RM60,000 over a 4 years course. Info here: your-uni.com

For INTI International University, its Bachelor of Computer Science would be around RM33,000 for the whole degree. (online studies). This takes 3 years. Meanwhile its Bachelor of Accounting & Finance (Honours) is at RM80,000 for a 3-year course. Lastly, Bachelor of Mechanical Engineering costs RM90,000 for a 4-year course. Info here: your-uni.com

If we could get the course we wanted in public university, then the total fee is easily halved from the above. RM80,000 is not that expensive I think when compared to going overseas but if we did not start saving when our children were young, chances are it will be financially burdening if we suddenly need to fork out the needed RM22,000 per year when they start their studies. One such way?

Tabung Pendidikan – Simpan SSPN by PTPTN

There are many good reasons to save too. Here are them:

How easy is it to save?

I have received the below because I have saved for a couple of years. I do not think too much about whether it could cover the whole degree but the aim was to have a sufficient amount based on the private university tuition fee structure. Hopefully both of them are doing well enough to take up some form of scholarships but if not, then at least their SSPN savings would be enough to cover a big part of their tuition fees. Yes, I also think their angpows x 20 years would be significant by the time they are ready for university too.

How much could they have by the time they are 19 years old?

It’s easy to save. Even if it’s just RM200 per month, it’s RM2,400 per year or RM46,000 if we save it from the time they were baby to the time when they are 19 years old. Including the interest, then this RM46,000 should be easily RM60,000 by then. Means it’s more than enough for the tuition fee or I just top up some amount if they are pursuing a 4-year course instead.

If we know how to invest, they could mean higher returns too

I like to say try property investment but I think it’s up to individuals. Even if we invest in the stock market for a dividend based company, chances are we would have even higher amount than the above. Just need to remember not to take too high risks because this savings is meant for their education and it has to be available when they need it. If we do not know how to invest beyond just the Fixed Deposit, then saving into the SSPN is another good option too. Remember, this is also protected by the government too.

Happy saving for our children’s future!

Happy contributing and earning. 

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