Live within your means

Robert and Sally are sending off their children to Singapore for high school education.  They just finished their primary schools last year.

The combined income of both Robert and Sally are around RM4,500.  The company gives them an apartment to stay.  Their commitments are a new piano and Myvi, around RM1,000.  As long as they maintain simple lifestyle, their household income should be sufficient for the family.

However Sally seems to give a lot of priorities to their children by minimizing their own spending.  She sends them for piano and dancing sessions, she wants them to get the best eduction she knows off.  By sending the children away, Sally does not think of their higher eduction as she has no plan to save for them.  Sally is spending almost every dollar on their high school education.

What if either Robert and Sally cannot work as they are now, the whole family will be in financial difficulty.  Their children need to come back.

Like many others, Robert and Sally do not plan ahead.  When you are not planning ahead, you are indeed planting a time bomb.  It seems as though they are planning the best for your children, they are in fact ignorant financial planning.