Saving for your children's education is clearly a top priority for most parents, but many fail to squirrel away enough cash for what can be a hugely expensive exercise.

A recent survey by OCBC Bank found that six out of 10 parents who plan an education fund target to save only up to $40,000.

But a three-year university course, including living expenses, in Singapore will cost about $93,190 by 2027, when a baby now will be 18 years old.

That amount snowballs if a foreign university is the aim.

Like most young parents, Mr Ivan Yew, 30, and Ms Hazel Ong, 28, who tied the knot in April last year, have already started saving for four-month-old daughter Claudia's tertiary education.

Mr Yew, a senior executive at a local university, and his wife, who works in a bank, are aiming for local tertiary education for Claudia.

'We feel that Singapore, which is striving to be a vibrant education hub, will have sufficient good universities to choose from,' said Ms Ong.

The couple have a Manulife 21-year regular premium endowment plan that will be used for Claudia's education. It was bought by Ms Ong in 2006 and has a sum assured of $60,000.

Its annual premium is $4,994 and allows for yearly withdrawals of $3,000 after the second year.

Initially, the couple planned not to withdraw the payments but re-invest with the insurer at a projected annual rate of 2.75 per cent return.

But they have changed their minds. Last July, the couple withdrew $3,000 and started investing it in small sums of $250 a month in DWS China fund. They started in October and the fund has achieved 10 per cent to 15 per cent returns.

The Yews will keep withdrawing the annual coupon payments for investing in the fund. However, by opting for the annual withdrawals, the plan's projected maturity benefits will be reduced to $70,692, comprising a guaranteed maturity benefit of $15,000 and the balance, unguaranteed.

Had the couple opted to re-invest the annual payments with the insurer, the maturity benefits would be $154,744, with $72,000 guaranteed.

The couple also have three insurance plans each, comprising two investment-linked insurance plans and a whole-life policy, for their own financial plan.

They also have lump sum investments in unit trusts, mainly in the Asia market, China and India while the family is covered under Aviva's MyShield hospitalisation plan. The couple plan to have another baby in three years.

Four financial advisers have ideas on the strategy the Yews should follow.

This article was first published in The Sunday Times.