In February of 2021, the unemployment rate of the Philippines rose to 8.8%, slightly higher compared to January’s figures of 8.7%. For many Filipinos, the future isn’t looking very bright. Because of the high unemployment rate, it’s becoming a free-for-all for job seekers all around the country. Having a college degree is becoming more essential to stay competitive in the job market.

For many parents concerned about their child’s future, Educational Planning is starting to look like a necessity rather than a luxury. I mean, let’s face it. Putting a child through college isn’t cheap at all unless your kid is lucky enough to get a scholarship or be accepted to a State University. For an average Filipino kid hoping to get into the big three—University of the Philippines, Ateneo de Manila, and De La Salle University, the annual tuition could range from ₱35,000 to ₱230,000. That kind of money isn’t easy to provide.

What is Educational Planning?

First, it’s important to know what Educational Planning and Management really is. Educational Planning in the Philippines is like getting a combination of Life Insurance and a savings account. It’s designed to allow you to save money for your child’s college education. It’s an investment that grows as you continue to contribute to it with the ultimate goal of paying for your kid’s college tuition. Usually, an Educational Plan also comes with a Permanent Disability or Death Benefit that will guarantee a payout to the beneficiary (in this case, your child) should something happen to you, the policyholder.

Why is Educational Planning Important?

In 2018, the average annual income for a Filipino family was ₱313,000. That means, if you plan to send your kid to school at De La Salle University, you’ll need to spend 73% of your annual income. But wait, there’s more! That only covers the college tuition. You’ll have to pay out-of-pocket for miscellaneous costs like your child’s allowance for transportation, food, room & board (if applicable), and other such expenses that would drive any parent crazy!

The solution? Save for your child’s education early and save yourself from all the grief that comes with being unprepared.

The Educational Planning Process

First, you have to decide what kind of Educational Plan you can afford in your income bracket. Believe me, it isn’t cheap. Try to calculate it so that your annual premium for your kid’s educational plan amount to no more than 30% of your annual income. Any more, and you’ll most likely wreck your budget.

Second, calculate the number of years you can afford to pay the premium. This is easily computed for people who have stable and secure jobs. This works just like any investment—the more money you put in, the better the returns. So, try to contribute to your kid’s educational plan for at least five years (more if you can). The money you put in will be managed by investment professionals who’ll reinvest it in other ventures. This will assure you of a steady investment growth that’ll someday put your child through school.

Last, set your goals and stick to them. Educational Planning is not a short-term commitment. You should be in this for the long haul.

Things Should be Easier, Not Harder

Always remember that Educational Planning is a way to make things easier on you. That’s the reason why you’re planning ahead. It’s a way to avoid working your tail off from sunup to sundown just to get your child a good education. Reserve some time for R&R every once in a while. If things are easier, then your plan is definitely paying off!

In the end, your efforts will be your Legacy of Love to your child, and someday, your grand kids as well. Get smart and start planning your kid’s future now! Book a call with me here

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