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Wednesday 31 July 2013

how much does it cost to raise a kid

After scouting around for the right school for H, we've finally landed on a decision, and I must say we're pretty happy and confident with our decision. H will be off to another international school January next year, and will be starting Year 1.

We've never thought much about the cost of education but after paying the registration fee, we got a little jittery. It's fine if you only have one kid, still ok if you have 2, but now we'll be having baby number 3. So it was time to really do some serious budgeting.

Based on my estimates taking into account inflation, to put a kid through 12 years of international schooling and 4 years in a top university overseas (I used UK as a benchmark since I'm more familiar with the system), it will cost us a whopping RM1.6 million. And this is just for the first kid!!! Lest you think we're wasting good money for early education, i.e. the primary and secondary years, the bulk of the costs is actually for tertiary education (>75%).

It's high time to put our investments to work. And I guess there also goes my early retirement plan!

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