EDUCATION FUND

Education Fund

defined as fund to be separately allocated

for the payment of our children education
cost in the future
Education Need :

•Preschool/Playgroup
•Elementary School
•Junior High School
•Senior High School
•Undergraduate
•Post graduate
Funding

•Saving your money through banking

services.
•Insurance products
•Investing
•Taking short term loans
•Selling assets
Preparing Education Fund

•Choose the target school

•Find the cost of the school now and how
soon we are going to need it
•Choose the investment vehicle
•Protect the risk
•Evaluate regularly and update the
investment plan
Case
Pak Rizal has married with Ibu Lina one year ago and now they
have a 6 month old baby girl. They love their baby very much
so they plan to send her to a proper school. Pak Rizal has saved
IDR 50,000,000,- in time deposit that gives 12 % interest. As a
manager, Pak Rizal receives IDR 25,000,000,- per month,
meanwhile Ibu Lina does not want to work anymore. This
family has moderate risk profile. They want to send their girl to
good Playgroup, Elementary, Junior High School and Senior
High School in the country. The average increase in education
cost is 10 % annually. Since Pak Rizal has never learned time
value of money concept, please help them calculate the need
for their children education fund?
 Calculate the tie needed to enter every level of the school :

ENTRY FEE MONTHLY FEE

3 years to go for first kindergarten IDR 8,000,000 IDR 350,000/month
4 years to go for second kindergarten transfer IDR 400,000/month
5 year to go for elementary school IDR 15,000,000 IDR 500,000/month
11 year to go for junior high school IDR 17,000,000 IDR 600,000/month
14 year to go for senior high school IDR 7,000,000 IDR 400,000/month

Total Cost Needed :

TUITION BOOKS ETC TOTAL COST PV TOTAL COST FV

First kindergarten IDR 12,200,000 IDR 3,300,000 IDR 15,500,000 IDR 20,630,000
Second kindergarten IDR 4,800,000 IDR 3,200,000 IDR 8,000,000 IDR 11,712,800
Elementary – 6 year IDR 51,000,000 IDR 19,000,000 IDR 70,000,000 IDR 112,735,700
Junior High – 3 year IDR 38,600,000 IDR 8,400,000 IDR 47,000,000 IDR 134,096,486
Senior High – 3 year IDR 21,400,000 IDR 13,600,000 IDR 35,000,000 IDR 132,912,442
Total: IDR 175,500,000
 The time deposit of IDR 50,000,000 can be allocated for the following :
First kindergarten IDR 15,500,000
Second kindergarten IDR 8,000,000
Elementary School IDR 26,500,000,
Shortfall fund for Elementary School = IDR 43,500,000

TUITION FEE BOOKS ETC TOTAL COST NOW TOTAL COST IN FUTURE
First kindergarten 0 0 0 0
Second kindergarten 0 0 0 0
Elementary School 0 shortfall IDR 43,500,000 IDR 70,057,185
Junior High School IDR 38,600,000 IDR 8,400,000 IDR 47,000,000 IDR 134,096,486
Senior High School IDR 21,400,000 IDR 13,600,000 IDR 35,000,000 IDR 132,912,442
Total Cost : IDR 125,500,000

Moderate risk profile is assumed to be comfortable with Hybrid Mutual Fund Investment which generates return
between 16- 18 % yearly:
Thank You