One of the most certain things in life is this: You cannot run away from paying income tax.

Every April, all working Singaporeans will be busy filing their taxes – and some really feel the pinch especially if they have made substantial earnings that year. 

The income tax is not fixed – it progressively increases as you earn more annually.

According to IRAS’s tax calculator, you need not pay taxes on the first $20,000 you earn. The next $10,000 of income will incur 2% tax. And the tax rate increases the more you earn. The highest personal income tax rate is pegged at 22%, and this is for those who earn more than $320,000 per annum. 

However, there are 15 ways you can reduce the total income tax legally. Before we dive into these 15 methods, you will need to understand what tax reliefs and tax rebates are. 

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A 2020 survey by HSBC showed that unexpected expenses and reduction of income are 2 of the top 3 financial concerns of all respondents across all financial fitness levels.

Ironically, a separate survey showed that only 1 in 3 Singaporeans have enough put away to last them 6 months.

Most of us are worried about these unexpected expenses but only a third of us are prepared to face it; only a third have what most financial advisors would consider as a good sized emergency fund.

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What will a degree cost by the time your newborn is ready for university?

A local degree that costs about $81,890 today, including living expenses, is on track to cost more than $130,000 in 20 years, when a baby born in 2026 would be at university. That’s because the cost of education in Singapore has outpaced general inflation for two decades.

The good news: with enough lead time, this is one of the most plannable goals in personal finance. You know roughly when the money is needed and roughly how much.

This guide walks you through the full numbers, from preschool to degree, and every major way to fund them.

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Do you think we can afford to send our children to universities in the future?

The cost of education has risen significantly over the years, and even with more saving and investment platforms readily available to generate higher returns, some Singaporeans are questioning whether pursuing further studies is worth it.

We were curious to see what Singaporeans’ thoughts are on the cost of a university education and whether it’s worth its high price.

We surveyed 1,088 adults aged 18 and above and here’s what we found. 

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Many parents still hope to send their children to university, even as the world puts more weight on skills and talent.

A degree still counts for a lot, and many graduates value what it gave them, the way of thinking and the people they met, as much as the certificate itself. So if university is the plan for your child and you are wondering where the money will come from, this guide is for you.

In Singapore, there are six main ways to fund a university education: bursaries, scholarships, loans, savings, investments, and child education endowment plans. Most families end up combining several. We explain how each one works, with the pros and cons, below.

Funding is only one piece of the wider picture. For the full cost breakdown from preschool to degree, and how much to save each month, see our complete guide to child education planning in Singapore.

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While most parents hope that their child can study in one of the six local universities in Singapore, this may not always be possible for a range of reasons.

For one, some students are unable to produce the minimum results to gain entry into the local university and course of their choice.

Next, your child may be interested in pursuing a course that is not offered here, such as Veterinary Science, which no local university currently offers as an undergraduate degree.

Lastly, the child may want to study at one of the more prestigious universities overseas, where many well-known professors and experts are based.

As a parent, you likely want to give your child the widest range of opportunities. In this article, we look at the cost of an overseas university education, and how to fund it using various financial tools, should the need arise.

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Raising a child in Singapore can be a costly affair.

Among the many costs involved (child delivery, childcare, living expenses, and more), the biggest ticket item of all is their university education.

Helping to fund this final stage of their education journey, before they become a (real) adult, is one of the last big financial commitments we make as parents.

Singapore is a competitive place. Every edge you can give your child increases their likelihood of succeeding in the future.

Setting up an education fund for your children means that when it’s time for them to enter university, the money is there if they need it.

One popular way to fund an education is a child education endowment plan.

Today, we’ll take a look at what it is and how to weigh it against your other options.

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How much should you be setting aside each month for your child’s university education? For most families the honest answer is a few hundred dollars, but yours depends on your child’s age and the path you have in mind. The calculator below pins down your figure. The rest of the page gives you the 2026 costs and inflation rates to enter, and what to do about the result.

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Singapore has constantly been ranked as one of the cities with a high cost of living.

While some people may wonder if such statistics on Singapore’s high cost of living is valid, especially since $4 meals still exist in the hawker centres, it is an undeniable fact that other necessities of living are much higher than in other developed countries.

One of the main factors for the rising cost of living in Singapore can be attributed to Singapore’s lack of land and natural resources. This has led to Singapore’s dependency on other countries for supplying natural resources (food, oil, water, etc.) and on foreign labour workers to build our skyscrapers to accommodate a growing population on our tiny island.

Here are 9 statistics on Singapore’s rising cost of living that would affect Singapore residents’ financial decisions in the present day and future.

(Although we can’t control the cost of living, we can take charge by focusing on better ways to manage our finances.)

All prices quoted are in Singapore dollars (SGD).

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Before the global pandemic struck, Singapore was a popular city of choice for many expatriates seeking to move abroad.

Some famous people who have chosen to move to Singapore include Eduardo Saverin (co-founder of Facebook), James Dyson, and even Jackie Chan.

If you are planning to make Singapore your home, or if you are a Singaporean wondering how to plan your finances well to ensure you can keep up your lifestyle, read on to find out more about the average monthly cost of living in Singapore.

Note: All prices are quoted in Singapore dollars (SGD). As at 28 May 2021, 1 United States dollar (USD) = 1.32 SGD.

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