START SAVING EARLY
THE World Bank recently stated that Malaysia’s economy is expected to grow at a slower pace from this year up to 2020.
National Higher Education Fund Corporation (PTPTN) senior general manager Abdul Ghaffar Yusop reminds parents to prioritise saving.
“Make it a habit to save at least 10% of your salary.
“The National Education Savings Scheme (SSPN) was launched by the Government as a means to change people’s mindset.
“It is undeniable that the cost of living will increase in the future, and so will education fees. It will be difficult for the Government to give loans to every student,” he shares, calling the creation of SSPN an act of love and care from the Government.
Parents must be financially savvy and ensure that their children are not burdened with debts.
After all, Abdul Ghaffar says, parents are responsible for their children’s future.
A product of SSPN, the SSPN-i Plus account which was created in 2015 is one of the only education savings schemes in the country, which allows parents to deposit savings for their children the day the child is born for as low as RM1 a day.
When you start saving early, it prevents debts from looming over your children’s head, he adds.
With a minimum monthly savings of RM30 or up to RM500, an account can be opened.
“Even by saving a mere RM50 a month, in 15 years, you will have accumulated about RM10,200 for your child’s education,” says Abdul Ghaffar.
The Government-guaranteed savings comes with takaful coverage from RM40,000 up to RM1mil, and depositors are given tax relief of up to RM12,000 per annum.
Depositors can apply for tax exemption of up to RM6,000 for the SSPN-i savings account and another RM6,000 for the SSPN-i Plus takaful for life insurance and EPF.
It benefits both parents and children, Abdul Ghaffar points out.
In the unfortunate event that a parent passes away, the takaful coverage takes care of the child’s education.
“Additionally, a matching grant of RM500 for each child between the ages of seven and 12, who have a minimum savings of RM500 in their SSPN-i or SSPN-i Plus account, is another initiative we have introduced.
“Simply put; save RM500 and PTPTN will add another RM500 for free.
“An allocation of RM250mil is provided to 500,000 eligible students.
“As of August 2018, a total of 113,843 accounts have received the grants amounting to RM56,921,500,” he explains.
With only two months left to the year, Abdul Ghaffar urged parents to take advantage of the promotion.
On top of these initiatives, comes another; by depositing a minimum of RM50 every month, depositors will qualify for the ‘Cabutan WOW! SSPN-i Plus’.
Draws are held monthly, quarterly, and yearly.
The top prize for the monthly draw is a local family tour package worth RM4,000 and RM1,500 cash.
Consolation prizes; a trip to a local theme park worth RM1,500, and RM500 cash, will also be given to 30 winners.
The main prize for the quarterly draw which ends on Dec 31, is a trip to Disneyland Japan or an Umrah package for the family worth RM23,000, and RM3,000 cash.
The yearly draw ends on Dec 31 with a RM100,000 cash prize up for grabs.
Two second prize winners will take home RM50,000 each, while three others will win RM10,000 each. Four thousand depositors will also have the chance to clinch a RM200 consolation prize.
For details, call the PTPTN Careline 03–2193 3000 or log on to www.lovesspn.com.