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As a parent, you want to provide your children with the best. Unfortunately, giving them the best often requires a lot of money. 


According to The Edge, the cost of raising a child averages between RM393,000 and RM1.3 million.* In addition, parents spend more than half of their annual salaries footing their children’s post-secondary education. Whether they’re studying locally or abroad, you’ll want to be sure you have more than enough to cover their expenses. Hence the need to start planning and saving begins immediately!


Before you commit to a plan of action, it’s best to first explore your options.

Junior Savings Account

Even with a minimum deposit of RM1, junior savings accounts offer higher returns compared to regular savings accounts. Even by committing a minimal amount of your salary each month, you can look forward to reaping significant rewards by the time your child is ready for college. 

Skim Simpanan Pendidikan Nasional-i (SSPN-i)

This higher education savings scheme under PTPN serves as a regular savings account, minus the withdrawal options. Attractive incentives include insurance coverage, 4% annual dividends,** matching grants for low income families, as well as tax relief on your net savings within a particular year.

Child Education Policy

There are two basic types of education insurance plans: endowment and investment-linked policies. Endowment policies resemble a savings account with insurance benefits whereas investment-linked policies let you invest yet retain coverage.


Benefits include:


  • Earn bonuses and top-ups
    Above and beyond the assured income, you’ll also receive potential bonus payments added to your child’s education fund – even while you’re paying the premium. Which means that at maturity, you’ll receive more than the amount you were initially insured for.

  • It starts early – very early
    It begins the moment your child is born. Start saving before your baby begins to crawl and by the time they’re ready for college, all they need to do is keep running toward a great future.

  • Tax reliefs
    In addition to the regular tax relief for life insurance and the Employees Provident Fund (EPF) you can also claim relief for savings toward your child’s education. Be sure to put those extra tax savings toward your child’s education, too.

  • Premium waivers 
    A safety net for your nest egg should you, the policy owner, die or become permanently disabled during the insurance tenure. The remaining premium payments will be waived while the policy remains in force. 

Get everyone involved!

Saving for your child’s future can be a daunting task but not one you have to tackle alone. In fact, it pays to get creative! Instead of toys for birthdays, request for account deposits. Even ang paus and duit rayas will earn the much-needed income.


Remember the saying, “sikit-sikit, lama-lama jadi bukit”? It’s true! With a little diligence, molehills will become mountains! You’ll certainly won’t regret these little sacrifices to paving the way for a bigger, brighter future for your child.




This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy among Malaysians. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions that will improve all our well-being. This, in turn, achieves CIMB’s purpose of advancing customers and society.