Cost of a University Degree

Have you ever wonder how much a university degree will cost in the next twenty years? This question just popped into my mind out of a sudden this morning. So, I start googling on this topic today. I’m completely freaked out when I see these figures:

Whether it is for overseas or local studies, the cost of university education has been marching up. In Singapore, the increase in mainly driven by inflation, government subsidy and university policy. These are, more or less, the same factors that drive cost increases overseas.

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Since January this year, out of my own initiative, I opened a savings account for Edison. This account is solely meant for Edison’s future university education. I started with $400 per month.

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Assumptions:
Based on 13 months salary per year
Based on 20 years of savings (and working)
Exclude bank interests
Exclude hubby’s savings

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So,$400 x 13 months x 20 years = $104,000. Just barely sufficient for a 3-year local degree!

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In order to support a 4-year local degree, I need to start saving $500/month from year 2009. ($400 x 13 months) + ($500 x 13 months x 19 years) = $128,700

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If I'm a little bit more ambitious and I want to send Edison for a 4-year degree in Britain, this is what I need:

20

∑ ( [$400 + $200 (Y-1)] x 13 month )

Y=1

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This formula means I need to increase my monthly savings by $200 each year! $400/month in year 2008, $600/month in year 2009, $800/month in year 2010 till $4200/month in year 2027. I will get $598,000 if I do this!

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Wow! It seems like studying locally is perhaps the most economical option for little Edison. Mummy will have a really HARD time supporting him for an overseas degree (unless I strike a TOTO!)

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After today, I will stop dreaming about being a SAHM.