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| My Baby
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Plan For A Better Future
Financial planning goes a long way towards building a better future
Our children are our investment for the future. We do all that we can to give them the best that life has to offer.
For many of us, planning for a child starts even before conception, and we all know that we need to be financially prepared to give our children a good future. That said, we don’t necessarily need to stash wads of cash in our pillow cases before we even consider conception.
BABY BONUS
The Singapore government for one, offers the Baby Bonus Scheme to help lighten the financial costs of raising children.
A quick look at the education plans available to you and your child throughout their developmental years. Just remember, the earlier you start, the more options you have.
You can click on each of the products to find out more about them.
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At the heart of the Baby Bonus Scheme is the Children Development Account, or the CDA, in which the government tops up your savings, dollar for dollar, up to a maximum of $6,000 for your first child and $12,000 for your second, third and fourth children. The money can then be used for various purposes such as paying for child care services at approved institutions for your children.
To start a CDA for your children is easy enough. OCBC offers the OCBC CDA for your first to fourth children, and the bank does not charge account fees for such accounts. You can get more information about the OCBC CDA here.
You should however find out what more you can do with your children’s CDA to maximize your savings. With the OCBC CDA Extra, you enjoy higher interest rates for as little as $50 a month. Find out how you can enjoy greater returns with the OCBC CDA Extra here.
And if you have excess from the OCBC CDA, you can also consider the OCBC CDA Time Deposit Account and make your funds work even harder for you. Where to sign up? Well, right here.
THE IMPORTANCE OF EDUCATION
Our children’s education is one of the top-most priorities and when we think of saving for our child’s education we often think of the tertiary years. We start thinking – which university, which faculty, duration of study – all factors that determines the cost of the education.
But, what if someone were to tell us that even before we get there, we would need something in the region of $20,000 to put one child through his primary, secondary and pre-university years. Would that make us stop and think?
And this figure is derived from basic needs such as school fees, uniforms and textbooks. We are not even talking about enrichment classes like music, art, dance or language classes. Oh and don’t forget swimming lessons.
| Estimated Cost (Per Annum) |
Primary (6 years)
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Secondary (4 years) |
Pre-University (2 years) |
| School Fees |
$0
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$60
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$72
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| Miscellaneous Fees |
$132 |
$192
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$264
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| Pocket Money |
$480
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$1200
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$1800
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| School Uniform |
$150
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$150
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$150
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| Textbooks |
$100
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$150
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$300
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| Travel |
-
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$720
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$720
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| TOTAL |
$862
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$2472
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$3306
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Source: OCBC Wealth Management
Yes, it is true that a child is an expensive investment, but isn’t that only to be expected given that they are our most valuable asset?
As parents, we want what’s best for our children, and education is one of the greatest gifts we can give our children. Education is after all the key to a secure future. And to secure that future, as parents, it is our responsibility to ensure that we have the necessary resources when the time comes.
While many financial institutes would offer plans for your child’s tertiary education, not many offer plans that give you peace of mind in the first 12 years of your child’s education – the crucial years, really.
OCBC Bank is one of the financial institutions that offers such a plan. The 2-in-1 OCBC school plan consists of an insurance plan and a child’s savings account.
The insurance plan – School Protection Plan - offers the option of either a 12 or 18 year insurance plan for your child. You can also opt to insure a minimum of $12,000 or a maximum of $40,000. You pay premiums for the first 6 years and enjoy yearly cashback from the end of the sixth year.
The child’s savings account – OCBC School Savings Account – is where the yearly cashback would be deposited. What’s great about his account is that you can open it with as little as $100 and you are not charged any monthly fee for the account. You can also use this account to pay for your School Protection Plan premiums. More information can be obtained here.
Once the basic education is taken care of, you would then start thinking , what next?
With the rising costs of living and rising university fees, you just cannot ignore the need to start saving for your child as early as possible. With the OCBC MaxEdu Plus, you can protect and save for your child’s education. You can get all the necessary information right here.
Whatever your situation may be, it is always a good idea to save for your child’s future.
- Family.sg in collaboration with OCBC Bank
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