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ASNB Bijak: Build your Child's Education Fund

ASNB Bijak child education fund
ASNB
ASNB Academy

9 min read

Every parent wants the best for their children, and one of the best way is to ensure that their children has access to quality education. But this dream won't come true through hope alone, quality education often comes with a hefty price tag. For example, pursuing an accounting degree in Malaysia can cost over RM12,000 at a public university, and as much as RM45,000 at a private institution.

Current tuition costs at public (IPTA) and private (IPTS) universities for certain majors.

Based on an average annual inflation projection of around 4%, these current costs are expected to continue rising year after year.

Therefore, our children might need to take large education loans, work while studying, or worse, have to stop their studies due to financial constraints.

As parents, we need to prepare early so that our children are not overly burdened by education costs. Let us not rely solely on assistance or deliberately let our children bear a huge loan burden when we have the option to help them by building an education fund.

Don’t worry, because building an education fund is not as difficult as imagined, especially if the child is still young and has a long time before starting studies after SPM (Sijil Pelajaran Malaysia).

In fact, an investment as low as RM50 in ASB (Amanah Saham Bumiputera) every month is enough to allow your children to start their studies after SPM with a smile.

Investment Simulation:

  • Let’s look at a simple example.
  • Principal investment: RM1,000.00
  • Monthly investment: RM50.00
  • Average annual return: 5%

Invest Early, Benefit from Compound Interest

This principle is simple: your investment capital will grow due to the power of compound interest, as long as dividends are not withdrawn, and investments are added from time to time.

Therefore, the earlier you start, the longer your investment has to grow, and you can build a larger education fund.

Sometimes we don’t realize that an investment as low as RM50 per month, equivalent to the price of two branded cups of coffee or two viral food dishes, can be a future ticket for children to continue their studies peacefully.

Imagine if you invest RM100, RM200, or RM500 every month for one child. Surely your children will thank you because they can start life without burdensome loans.

The best time to open a child’s account is now. The earlier you start, the greater the impact on the savings built. Even just RM50 every month per child, with discipline and consistency, you are building a financial fortress that can guarantee a better future for your loved ones.

Besides investing monthly, don’t forget to invest any festive money (duit raya) or cash gifts received by the children into the same account. Make it a habit to give children cash gifts and teach them to save. Every time the savings are full, invest again so that the money continues to grow.

Involve them in the process of building this savings so they understand that investing is not difficult but very easy if done the right way.

This savings, later on, will not only be used for education but more than that. Who knows, your dedication to building savings and teaching children to invest from a young age will become a continuous financial resource for them in the future. Together, let’s make them a smart investing generation.

So don’t wait, let’s invest with ASNB Bijak to provide solid finances for your children. Various interesting activities are provided to guide your children to become the Generasi Labur.