The mindset that everyone should strive to attain a degree seems to be carved in stones for Singaporeans today. Singaporeans are viewing the importance of a degree with the highest priority such that they do not mind risking going into debt just to fund it.
We did a bit of research and found out three astonishing numbers with regards to university education today.
Twice the global average
Singaporeans spend an average of S$21,000 annually on education. This number is more than twice the global average, and slightly above what people in the United States are paying.
Things parents do for their children
More 52% of parents in Singapore are willing to go into debt to fund their child’s university education. Next to our property, paying for our children’s tertiary education is probably the biggest financial hit we will take. This hit will be even higher the children study overseas, which makes budgeting for your children’s education years ahead essential.
There is plenty of research showing that while parents rank providing for a child’s education a key concern above household and medical expenses, many tend to fall behind their saving targets and need help.
Life may not be that great after graduation
After graduation, what’s next?
It seems to us that life after graduation may not be a bed of roses. The ever increasing cost of living and competitive job market might have hindered the ability of graduates to repay their debts to their parents. This is the case for many, who took their student loans from a financial institution too.
The benefit of attaining a degree is still uncertain. As much as earning of a higher paycheque may just be one of the main motivation to the pursuing of higher education, it is ultimately not a certain bet.
Landing yourself or your parents in debt will only be worth it if both of this happens:
1) You are pursuing a degree in an area which is of interest to you
2) You have the ability to pay back the education debt you are in as soon as possible upon graduation.
This article first appeared in blog.seedly.sg