Two-thirds of Malaysian parents say the monthly cost of raising their children is higher than they expected, with everyday food and necessities now almost on a par with education outlays, according to a new survey by fintech firm Versa.
Household budgets squeezed by necessity as well as tuition
The Versa Parenting Survey found that 66% of parents reported their actual monthly spend on children exceeded expectations, including 27% who described costs as "much higher" than anticipated. Only 31% said spending was close to what they had budgeted, and 3% said they were spending less than expected.
When asked to identify the biggest monthly expenses, respondents placed food and daily necessities at the top, cited by 70%, with education fees and tuition a close second at 69%. The survey permitted multiple responses, so percentages are not mutually exclusive.
"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," said Teoh Wei Xiang, chief executive and co‑founder of Versa.
How families are adjusting
Faced with rising costs, many parents reported making financial adjustments:
- 30% said they had cut personal spending;
- 22% said they had changed their lifestyle;
- 16% reported delaying purchases;
- 11% had taken on extra income;
- Only 9% said they had made no financial adjustment.
Despite the pressure on household budgets, the survey suggests parents remain focused on future provision for their children: 78% said they already had savings or investments earmarked for their child's future, and nearly all of the remaining respondents planned to start saving or investing.
Implications for education and policy
The closeness of the figures for food and education expenses underlines that the cost of schooling is no longer the only or even the dominant economic burden for some families; routine living costs are rising to a comparable level. For policymakers and school leaders, the finding that everyday necessities now rival tuition may have several consequences.
- Pressure on families to prioritise immediate needs could affect participation in extra‑curricular activities and private tuition, with potential knock‑on effects for attainment gaps.
- High household strain may limit parents' ability to absorb fee increases or meet supplementary school costs, reinforcing the need to consider financial support measures for vulnerable households.
- Widespread parental saving despite higher costs suggests a strong commitment to children's futures, but also indicates families are making trade‑offs to maintain that saving behaviour.
| Survey item | Percentage |
|---|---|
| Parents spending more than expected | 66% |
| Food and daily necessities cited as a top expense | 70% |
| Education fees and tuition cited as a top expense | 69% |
| Parents with savings/investments for their child | 78% |
The survey results do not by themselves explain the drivers behind the rise in living costs or regional differences across Malaysia; nor do they specify the sample size and methodology in the material supplied. That cautions against over‑interpretation. Nonetheless, the figures point to a substantial shift in the budgeting pressures facing families and underline why ministers, education providers and welfare agencies need up‑to‑date evidence on both household incomes and outgoings when designing support.
For teachers and school leaders, the findings are a reminder that pupils come to the classroom with household realities that can affect attendance, readiness to learn and the resources families can devote to tuition and enrichment activities. As the debate over the affordability of schooling continues, the balance between immediate household costs and long‑term investment in education will remain central to discussions about family support and educational equity.
