[Get ready for primary school]
5 financial tips to be considered

Tips for parents
Parenting
Family finances
Education spending
Life events

Author: Mrs Chin27/04/2021

Applications for Primary One places are now open! In addition to the application process and documentation, parents should also consider the family’s financial circumstances.

Choosing the right school is, of course, important since it will have a profound impact on the child’s development and personal values. However, as the cost of getting an education could vary quite significantly from school to school, parents should also consider any final implications and not allow this to cause any financial burden on the household budget.

Parents can take note of these five areas when choosing a school for their children and planning the household budget.

1. Understand all expense items

Tuition fees, textbooks, uniforms, miscellaneous items, meals and extracurricular activities can all add up. If the school is far from home, you may to take into account the cost of a longer commute. To attend a desired school, some may even consider renting or buying a flat close to the school, and this is inevitably leads to significant costs. Without careful planning, these expenses could add up and cause much financial stress for the family.

2. Set a budget limit

According to a survey by the IFEC, one of the major sources of financial stress comes from children’s education. While it is natural for parents to want to give the best to their children, they should also set a budget limit on education spend, and consider if there are any trade-offs to ensure that the other necessary expenses are not sacrificed.

3. Think of other family financial goals

Parents should not overlook other family financial commitments and goals when coming up with an education budget. It is important for couples to communicate openly and make sensible choices. For instance, every family needs to keep an emergency fund, and parents should save and plan for their own retirement in order to minimise any financial burdens that that they or their children have to shoulder in the future.

4. Consider long-term financial ability

As children grow older, they may join interest classes and other learning activities which impacted the household budget. Parents should have a clear understanding of their long-term financial ability, including the availability of a stable source of income, and prioritise or adjust their expenses accordingly.

5. Choose a suitable school for your child

To ensure a happy school life for your little ones, rather than choosing a school because it is famous, take into consideration the character and ability of your child, and pick a school with a philosophy and teaching model that resonates with your family.

More: IFEC Savings Goal Calculator