Do you believe that a degree will pave the way for your child, giving them a higher chance of landing a well-paying job? If you do, then you share the sentiments of many other Singaporean parents. While traditionally regarded as a golden ticket to success, current day debates tend to disagree with previous ideas on the necessity of degrees.
With the increase in university admissions, graduates now occupy a larger proportion of our population. This means that for every 2 secondary school students, 1 or more will become a university graduate thus giving Singapore a graduate oversupply problem. Recent statistics have also shown an increase in unemployment rates for graduates, making it the highest unemployment rate since 2004.1 To answer some questions you may have, we came up with a list of 3 factors that you should know and consider before making a decision on your child's education.
#1 It's expensive
A quick check with several institutions saw that studying in a local university could be up to 85 per cent cheaper than an overseas education. But despite being cheaper, a Bachelor's degree in a local university would still cost an upwards of S$8,050 per annum.
Alternatively, if you are looking to send your child overseas or to a private institution, annual tuition fees can set you back by S$14,252 to S$62,802.
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#2 Not all degrees would get the same recognition
While possessing a degree is no longer a rarity, the value of a degree can differ based on the institution.
A graduate employment survey showed that graduates from private universities tend to have a lower starting pay and full-time employment rate as compared to those from local universities.2 As observed in the 6 months after graduation, only 58 per cent of private university graduates3 were able to find full-time employment as compared to the 82.7 per cent of local university graduates.4 Likewise, local university graduates also experience a 18 per cent higher median gross monthly income than private degree holders.
However, when compared against overseas graduates, graduates from local universities seem to have a negligible advantage.5
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#3 Graduates generally fare better in employability and income commanded
When surveying the general workforce population, degree holders are found to have better employment and promotion opportunities as compared to other qualification holders. They are also able to command a higher gross monthly income with the average income for diploma holders being 40 per cent less than what a degree holder receives.6
Moreover, graduates have the highest median income levels in their respective age groups and generally receive better pay increments. Their salaries are also less likely to stagnate as compared to diploma or secondary school qualification holders.
Therefore, a degree can be seen as a good investment as it may give your child better prospects and career opportunities.
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Ultimately, we only want the best for our children and having a degree can help them in their career journey. Therefore, it is important to have adequate planning for your child's education. You can use an education calculator to first calculate your shortfall before determining how your savings plan should be structured.
How FSMOne can help you get on track
Our team of friendly advisers is able to help you review your financial objectives, long term commitments, and offer you investment and insurance advice specific to your needs. If you would like assistance in reviewing your financial and protection portfolio, or simply to get a quote for an insurance plan, you can contact our advisers at advisory@fundsupermart.com.
Available Products on FSMOne Insurance |
Term Life, Whole Life, Critical Illness, Annuity, Health, Endowment from Manulife, NTUC Income and Tokio Marine Life Insurance *Please check with our advisory team if the product you want is available on FSMOne Insurance |
1Source: http://news.asiaone.com/news/singapore/jobless-graduates-highest-2004
2Source: http://www.straitstimes.com/singapore/education/private-school-grads-find-it-harder-to-land-jobs-pol
5Source: http://stats.mom.gov.sg/iMAS_PdfLibrary/mrsd_2016LabourForce_survey_findings.pdf
6Source: http://stats.mom.gov.sg/Pages/Labour-Force-in-Singapore-2016-Employment.aspx
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