Full disclosure: I was sent abroad to study at 14 where I lived in a boarding school, and eventually got my degree from London. I’m often asked if it was worth the expense. Indeed, one of the first considerations of many single digit millionaires is their children’s education: now that it’s plausible to send them abroad, does it really improve their qualifications, make them more outspoken, or generally change them for the better? A lot of it boils down to the personality of the child in question – but I’ve also noticed many parents fail to discern the real benefits of studying abroad:
In this era, it’s less about the difference in academic qualifications
Granted, ivy-league schools abroad may still carry more weight than some locals institutions; and quite often names like Oxford, Harvard, Cambridge, etc. come to mind. But branding and reputation aside, the quality of education in Singapore has largely caught up. It’s arguable if NUS and other local institutions can’t produce equally qualified professionals; and it’s quite possible that an NUS graduate ends up making just as much as, if not more than, a counterpart from Harvard or MIT.
The same could be argued about younger students, doing the equivalent of PSLE, N, O and A-Levels, and so forth.
I would thus venture the opinion that the main benefit is not so much a difference in quality of education, but in the learning experiences and character development. It also manifests in the different kinds of connections made available to your child. Going beyond the diplomas or degrees, these are edges such as:
- Social networks, even before tertiary education
- Code switching and comportment
- Dealing with interpersonal conflicts
- Laying the basics of financial literacy
1. Social networks, even before tertiary education
A good number of us in boarding school had ready jobs waiting for us, if we wanted to head back abroad to work. This wasn’t due to our superior academics: it’s just that we meet friends’ parents all the time, and form relationships. It makes it much easier to get introductions to companies, be hired by family businesses, etc.
And whilst the same can be said of studying locally, this is more useful if your child intends to work abroad. The fact is, there are some industries where prospects are better overseas, be it a chance to start out on actual Wall Street, or just to be in a country where a particular sport or artform is more lucrative.
The social networks also tend to pay off later in a career. Just as I’m often asked to provide inroads into Singaporean business entities, I tend to have an easier time getting interviews or pitch meetings in Australia, the UK, US, etc. Bear in mind the contacts created range beyond the actual country of study: dormitories, boarding schools, and even rented apartments tend to see students of many countries congregate, so they tend to end up with a fairly wide range of international contacts.
That said, a lot of this is dependent on your child’s personality.
If they’re shy and likely to just stick with other Singaporeans, then this benefit can be quite minimal. The students who had this tendency often left without any friendships, and hence without future contacts. While they still had the paper qualifications, I’d consider their time and money to be mostly squandered, as they ignored the biggest benefit of being abroad for a long time.
2. Code switching and comportment
Being able to speak English is great. But being able to speak English comfortably and effectively to an American, a Brit, a Frenchman who speaks it as a second language, and to your hokkien bunkmate in BMT (who basically also has it as a second language) is where the skill truly becomes useful.
Manners of expression are not the same, and lose their effectiveness if you can’t adapt to the listener. This also affects comportment: being abroad, you learn to carry yourself in a way that’s dignified, relaxed, assertive, etc. among people besides fellow Singaporeans. You could try to develop that with image consultants and body language coaching (all rather expensive), but nothing beats living like a native for a few years.
One noticeable trait of those who study abroad – but manage to also keep some of their roots – is their ability to code switch very quickly. They can be ordering kopi in an unmistakably Singaporean accent one minute, and then speaking to a CEO in the UK the next; and they can be easily understood in both cases.
Again, some of this is also a matter of personal aptitude, and up to your child’s willingness to interact often. But it is a useful skill that can set them apart in the business world.
3. Dealing with interpersonal conflicts
I would encourage parents not to intervene too often, when children have issues with dorm mates, room mates, or whoever else they live with. When living away from home, and with another, some degree of conflict is inevitable – this is where they learn to compromise where possible, and stand their ground where it isn’t.
Living in a boarding house, especially, teaches the invaluable skill of picking your battles. This is where you learn that sometimes, conflict isn’t worth it even if you win. You can get your dorm mate sent to detention for borrowing your phone without asking – but a soured relationship for the next three to four years probably isn’t worth that.
This is a vital life skill needed to get through NS first, and then to survive the working world later. Quite often, those who learn this skill early also climb the corporate ladder early.
4. Laying the basics of financial literacy
Here we address the biggest fear of most single digit millionaires: that they’ll give too much to their children, and spoil them. Well if that’s one of your big concerns, have I got the solution for you:
Leave them to manage a tight allowance on their own. It’s amazing the financial skills they’ll cultivate.
When I was in boarding school, we were given $8 a week (this would rise by about $2 per year of seniority). This was the amount disbursed regardless of how much your parents put in – if there was an excess, it was being saved up for your emergency expenses. At the end of your schooling, any remainder was also returned to your parents, and quite a few were shocked at the amount returned.
$8 per week is obviously not enough to entertain yourself. So we quickly caught on that we were supposed to do odd jobs: work in the school canteen, help to wash the teachers’ cars, help the groundskeeper carry bags of leaves, etc. Some of the more enterprising students learned to save up and buy candy in bulk from the store at the top of the hill, which they would then resell at a small profit.
(For younger children, you don’t need to worry about safety: meals, accommodation, and healthcare are still provided, and activities are closely monitored by teachers).
For older students, it’s probably best if they learn to cope with living on their own – buying their own groceries, paying for their own data plans, etc. before they come home for NS, or to join the workforce. This sort of basic grounding helps them to manage their first real paycheque, or bear up with the inevitable dry spells in life (most NS Men are stony broke until the end of their service).
As to the big question of whether it’s worth it, the answer is “yes if…”
Yes, it’s worth sending your children abroad to study…if they can take advantage of it to learn the aforementioned soft skills, build their social networks, and actually focus on what they’re doing.
It’s a lot less worthwhile if they’re going to spend their time going delinquent, hanging around only with other Singaporeans, or staying alone in a room eating cup noodles for the duration of their time abroad. You know your child’s personality best, so make your decisions accordingly.
As for the financial planning to send your child abroad, we can help you with that. Reach out to us on Single Digit Millionaire with your questions.
