Parents often have money questions, both big and small. 

This month, our guest coach Mr Money answers a top question from our community: Should we pay for our children’s university education? 

Read on for his advice!

Dear Parents,

To answer this question, I’d like to share a story about two daughters: my own daughters, who are now thriving, happy adults. 

After they completed their O-Levels, both of them worked whenever they had free time, either after school or during school holidays. Eventually, they were both able to fully pay for their university degrees.  

• My Eldest Daughter (Singapore Institute of Management degree):
  She waitressed on weekends, tracked every dollar in a spreadsheet, and once told me she felt prouder paying her own phone bill than receiving an A. We gave her a small monthly sum, which was enough to ease pressure, but not enough to cover all her expenses.
• My Younger Daughter (Bachelor's and Master's degrees in Singapore, PhD at Korea University):
  Flights, rent, food — she handled it all, mostly through vacation work and research stipends. 

My Advice? Start the Money Conversation Early

If you wait until the university offer arrives to say “we can’t afford it,” resentment builds. This is why it’s important to lay the groundwork early, through these small but consistent family habits:

• Have simple money conversations. “Here’s what we earn, here’s what we spend, here’s what’s left.”
• Let teens “own” a monthly expense by age 16. Instead of a phone top-up, assign them a $20/month entertainment or snack budget. This can be for bubble tea, cafe outings, or movie tickets. This way they learn that $20 could go toward one big treat or several smaller ones, but not both — teaching real trade-offs.
• Track, but don’t micromanage. Each of our children recorded daily expenses in a small notebook. Every week, my wife skimmed through it, not to judge, but for awareness. Unless they asked for more allowance, we didn’t comment. But if they needed more money, we would review their expenses together.
• Teach kids to ask “Is it a need or a want?” This simple question helped my kids take ownership and build healthy money habits from a young age.
• Going overseas? Teach kids to track exchange rates. Before flying to Korea, I asked my younger daughter, “What’s 5,000 KRW in SGD?” She couldn’t answer then, but by the time she landed, she was checking exchange rates daily. This habit helped her to stretch every dollar.

How much should parents set aside for university funds? 

I would like to propose the 50:25:25 model, which I think is a reasonable ratio for shared responsibility:

• 50% Parents/Guardians
• 25% Teen Contribution
• 25% Scholarships, Grants, or Loans

The message to teens is this: “We believe in your education, but we’re covering half, not all."

To have this conversation, share a snapshot of your household fund or spreadsheet, and let your teen see why it's prudent to cap your share at 50%.

Of course, you can adjust this ratio to suit your family's situation.

For high-income families, consider a 30:40:30 ratio, where 30% of university funding is from parents, 40% comes from the teen, and 30% is from scholarships or loans.

Lower-income families could try a 20:30:50 ratio, where 20% of university funding is from parents, 30% is from the teen, and 50% is from scholarships or loans.

How can my teen save money for their university education?

Here are some potential sources of income for your teen:

• Part-time jobs during school holidays (retail, tutoring, F&B)
• Saving a fixed % of ang baos or allowance using a “University Fund jar" (i.e. savings account)
• Monetising skills (e.g. music lessons, graphic design, baking)
• Short internships or freelance gigs

The key lesson for them is this: “When you’ve earned or saved that quarter of your tuition, you won’t take lectures or your degree outcome for granted.”

How can I talk to my teen about getting additional funding for university?

You can encourage them to hunt for university bursaries, community scholarships, and government student loans.

This teaches them that they play an active role in shaping their future.

It also helps them to realise that big financial goals often require teamwork. In this case, they are relying not just on their own effort, but also on family and institutional support.

Above all, through these discussions, they will also learn that being supported by family is a privilege, and not a right. Covering part of their own tuition makes them see what a degree truly costs. School fees, textbooks, living expenses, and rent — none of it is free.

Who is Mr Money?

These tips are brought to you by Ernest Tan — author of Raising Financially Savvy Kids, founder of Jopez Academy, and financial literacy educator who has conducted workshops for students at Hwa Chong Institution. From financial hardship to millionaire mentor, he now helps families shift their mindset and build lasting wealth together.

Found Mr Money’s advice helpful? Here’s your chance to learn more from him! 

Members of our KiasuParents community can enjoy access to his Financial Parenting Masterclass (worth S$199) at the special price of S$29, with the discount code KSPHUDDLE2604, while slots are available. Find out more about the masterclass, which has long-term benefits for the whole family.

This article is brought to you in partnership with Jopez Academy.