SINGAPORE - It is every parent's dream to see their children succeed in life, and to provide their young with a good education.
With the increasing cost of education, planning early will minimise the chance of your child being deprived of a good education.
The good thing is that education is a goal where the time horizon is a known factor, and parents will be able to accurately estimate how much time they have to achieve their targets. Experts recommend starting as early as possible, to give parents the maximum amount of time to reach their goals.
The first step is to identify how much money is needed to send your children to school, or to university. It is important to budget for other essentials such as accommodation and transport.
To help customers with their research, HSBC has put together a set of country guides on its website providing handy information on the cost of living, tuition fees and other practical information. Countries covered include Singapore, Australia, the UK and the US.
Next, take stock of how much funds you have already set aside for this goal and work out the shortfall.
With more time to reach the target amount, customers can afford to invest in instruments that provide a lower rate of return, which are usually less risky.
Mr Deepak Khanna, head of wealth development at HSBC Singapore, noted: "One cannot ignore the importance of investing regularly, and early, to reduce the level of risk you need to take."