Malaysian parents say food bills now rival education costs, survey finds

KUALA LUMPUR, Aug 19 — A survey by Malaysian fintech company Versa has revealed that two-thirds of Malaysian parents are now spending more on their children each month than they anticipated. Food and daily necessities have become nearly as costly as education fees and tuition, according to the Versa Parenting Survey. Sixty-six per cent of parents reported that the actual monthly cost of raising their child exceeded their expectations, with 27 per cent saying it was "much higher."

Just 31 per cent of respondents felt their spending aligned with their budget, while 3 per cent claimed they were spending less than expected.

The survey, which polled 2,565 respondents through the Versa app, found that food and daily necessities were the biggest monthly expenses for 70 per cent of parents, narrowly surpassing education fees and tuition at 69 per cent. The findings indicate that while parents may expect education to be a substantial expense, everyday spending on food and necessities can be equally significant.

In response to higher-than-anticipated expenses, 30 per cent of parents surveyed said they had reduced their personal spending, while 22 per cent made changes to their lifestyle. An additional 16 per cent postponed purchases, and 11 per cent took on extra income. Only 9 per cent of respondents indicated they had made no financial adjustments.

Despite the increased costs, 78 per cent of parents surveyed already had savings or investments set aside for their child's future. Of the remaining respondents, 97 per cent planned to start saving or investing for their children in the future. Teoh Wei Xiang, chief executive and co-founder of Versa, commented on the situation, stating, "Parents keep telling us the expenses are coming in higher than they expected, and yet most of them are still putting money aside every single month for their child's future.

That kind of determination shouldn't have to be this hard — our job is to make it easier for the parents already doing it, and simpler to start for the ones who haven't yet."