A Parent’s Guide To Funding Your Child’s Education Overseas
Singapore may have some of the top universities in Asia, but most Singaporean parents are opting to have their children study abroad.
Australia tops the list for the most popular overseas destination, followed by the UK and the United States. In 2015, there were 8,165 Singaporean students enrolled in higher education institutions in Australia, while 7,540 students were enrolled in the UK and 4,727 in the United States.
Even though most parents would consider sending their children abroad, a survey conducted by HSBC found that parents underestimate the costs of overseas education. Parents might overlook the costs of rent and living expenses, as well as the rate of currency exchange.
However, the currency exchange rate has a real effect on where (or whether) parents are choosing to send their children abroad – the decline in the Australian dollar from 2013 to 2016, for example, is reflected in the high number of Singaporean students in Australia in recent years. Additionally, the rising number of overseas Singaporean students has been in part due to the strength of the Singapore dollar, as it makes overseas education more affordable.
Unfortunately, this also means that a weakening Singaporean dollar could make an overseas education out of reach for your child, if your budgeted savings have not taken currency fluctuation into account.
To help you plan for your child’s education, here are some projected amounts you will need to save to send your child abroad, as well as how you can minimise currency fluctuation risks.