Education, without a doubt, is one of the most important legacy that a parent can give to his/her children. Without it, the possibility of success in this very competitive world is very slim. That’s the very reason why parents aim to send their children to the best school possible.
However, there is one challenge to this master plan. Tuition fees here in the Philippines, especially for prestigious schools like Ateneo, La Salle, UST, and others, are not getting lower each passing year. In fact, the probability of having to pay a million pesos in one school year is getting real as the years passed by because of the said 10% average of tuition fee increase every year.
Having a hard time imagining it? Let’s get the numbers rolling.
According to GMANetwork.com during their tuition fee research on Ateneo de Manila published last April 4, 2013, more or less, the overall cost per semester per student to study in Ateneo is P80,000.00. For a two semester school year, that equates to P160,000.00. Of course, that excludes all operational expenses of your child while studying. For now, let’s put that out of the equation.
If you have a newly born son/daughter, then basically, you have 18 years to save for his/her college education (K-12 was accounted for). Let’s begin the forecast.
Tuition Fee (beginning)
Tuition Fee (ending)
Now you see, during the time your son/daughter graduates from High School, annual cost to study at Ateneo will be around P900,000.00. Good news is, that’s just good for one year. For a four to five-year course, you’ll be needing a whooping P3.6M to P4.5M to ensure that your child will have a competitive advantage when he enters the real world.
Now, maybe you’re thinking, There’s no way I’ll be spending that much for my child’s college education!!!
Well, please do stop reading. This article is intended for those parents who love their children so much that they are willing to do anything and everything just to give their children a higher chance of getting a brighter future.
Now, what will you do next? Well, it’s time to act and save for your child’s education.
Believe it or not, P1,000.00 saved and invested every month would make a huge difference.
Say, you are investing P1,000.00 each month or P12,000.00 each year to an investment that yields an average of 15% per year, you’ll be able to achieve around P1,000,000.00 after your son/daughter graduates in High School, in time for college. That’s equivalent to one-year education cost at Ateneo!
Take a look at this!
Now, if you invest around P48,000.00 a year, you’ll be able to make your son/daughter graduate with prestige! The only thing you’ll need to worry about during the college years are the operational expenses of your children like allowances, and other expenses from different school activities.
Hooray! You’re good to go! Well, almost…
One problem with life is that it is full of uncertainties. You really cannot foresee with absolute certainty what will happen in the future. There are risks of disability, sickness, and even death. As a parent who loves their children so much, these things should not become excuses that would hinder the dream of providing a brighter future for the children. Indeed, a parents love transcends even death.
Here is where insurance comes into play.
Most people consider insurance as an expense. That’s not fair though. Understanding it’s function and it’s critical role to planning a successful educational program should never be underestimated.
Let’s illustrate it.
What if at the end of the fifth year of your educational program, that expected but unwanted event happen too early in life? What will happen to the educational program? Let’s take a look.
Not only it will cut the expected amount at the end 18th year to half, but also, the probability of using the same fund to finance memorial services and the transition period of the family left behind, is not too far off. This will put too much pressure on the parent left behind and will hugely compromise the education of your children.
Having insurance protects your family from these uncertainties and gives time for the parent left behind to overcome the despair and have the chance to find opportunities that will support the future needs of the family.
Now you’re saying you love your children so dearly?
Knowing this fact, I hope you will not ignore it in planning your educational program.
If you need help, consult your financial advisor.
To conclude, I have created a 2k a month educational plan program which you might take interest in.
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