Prudent saving and education planning through schemes like Simpan SSPN can build a sustainable financial ecosystem and reduce future debt burdens
KUALA LUMPUR: Prudent financial planning and saving practices are vital for family well-being and can build a sustainable financial ecosystem amid rising living costs.
Senior lecturer Dr Umi Hamidaton Mohd Soffian Lee said structured education savings, like the National Education Savings Scheme (Simpan SSPN), are an effective approach.
She stated the syariah-compliant scheme provides a secure medium for parents to plan for their children’s education.
“Through this savings scheme, families can plan their finances in a more organised manner,” she told Bernama.
It also offers protection against unexpected events like job loss that could disrupt education.
The scheme’s effectiveness is supported by a government income tax relief incentive of up to RM8,000.
“Simpan SSPN is fully guaranteed by the government without involving any additional risk to depositors,” Umi Hamidaton added.
She highlighted that the scheme’s takaful protection reduces financial burdens and supports long-term risk management.
“Simpan SSPN is a gift as well as a way for parents to express love and a sense of responsibility towards their children,” she opined.
Early savings through the scheme is crucial for families planning local or overseas education for their children.
It can reduce reliance on government fiscal assistance and minimise potential debt from high education costs.
Parents are urged to be aware of the importance of cultivating saving habits from an early stage.
Rising tuition and living costs will place significant financial pressure without careful planning.
A key objective is to prevent children from bearing long-term debt from education loans after graduation.
“The practice of saving by parents also serves as a good example to children in terms of financial management,” she said.
