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Saving for Child's Education

After many months of saving, I am glad to say that the amount in my child's POSBKids Savings Account has reached a nice tidy sum of $3,600. I have basically been putting all the red packet money that he has been receiving into his bank account. (For those who live overseas, the Chinese have a custom of giving these red packets which are filled with money for occasions like Chinese New Year, birthdays, etc).

So all these money has come in handy. Unfortunately, if I do a straight line projection, it shows that I will still be severely short of the $50,000 that I hope to accumulate by the time my child hits the age of 18/20.


4 comments:

  1. Hi FF,

    Just accumulating money in a savings account is not enough. Inflation would just erode its value.

    After discussing with my sister, I took some of my niece's savings and invested in SPH shares for her almost a year ago. This would help her grow her savings faster. In case you are wondering, my niece is in Primary 2 this year. ;)

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  2. Unless you are a high income earner and can save lots of money; otherwise it may be difficult to reach your target without higher returns from your saving.

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  3. Hi AK71,

    I know. I have been investing a portion in stocks too. But it is hard to keep track what is meant for my child's education and which is my retirement fund =) Not sure if you face the same problem

    CW8888,
    I agree with you. Based on my saving pattern, relying on savings alone might not suffice.

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  4. Hi FF,

    For me, I use SRS to build my retirement fund and whatever I have in my brokerage account, I use it to invest for my children's education.

    Whatever is left from this brokerage account after paying for their education will end up as my retirement fund bonus. : )

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