Saving, like exercising, is always easier in theory than in practice. But the first important step is to just start now. It is never too late to get into the habit of saving. Focus on the goal—your child’s bright future through good education—and use it as your motivation. Open a bank account solely for this purpose. Start with a small, manageable amount and plan ahead to increase this amount at a comfortable pace. Remember: Start now, even if you start small.

While you’re at it, it is also important to teach your children the value of saving. Encourage them to set a purchase goal and to set aside money they get on birthdays and Christmases to be able to achieve that goal. One way to introduce this idea to your kids is by telling them the story of Kayla, who, after months of saving money from her allowance, was able to buy her dream bike.

For younger kids, giving them a piggy bank will surely excite them and feeling it get heavier as they add more coins is an easy way to encourage them. For older kids, you can help them set up a low-capital summer enterprise like selling ice candy or halo-halo to teach them the value of earning, and eventually saving, their own money. 

As any parent would know, budgeting is not as simple as it seems. But it is definitely doable and once you get the hang of it, it gets easier over time. The key to successful and effective budgeting is discipline and consistency.

You should always stick to your budget—prioritize the ‘needs’ and be modest about the ‘wants.’ Avoid going to the mall without a set agenda because you may end up buying things you don’t need. Plan your family vacations ahead so you can book flights and hotels early and get them at lower rates. Pack meals for work instead of dining out every day—it’s more cost-effective and healthier too. You may not immediately feel the effect but simple lifestyle choices can help you stay within budget.

When it comes to budgeting, keep your eyes on the bigger goal and stick to the plan.

Here’s a fact: Tuition fees increase year after year.

For example, a PhP 50,000 annual tuition fee in a private university in Metro Manila will be PhP 68,440.03 five years from now, and PhP 93,680.77 in 2026, or 10 years from now. This means that if you have a newborn baby today, his/her annual tuition fee will cost PhP 154,808.49 by the time he/she is ready to go to college at 18 years old. This rate is based on an estimated 6.48 percent annual increase rate, according to the Commission on Higher Education (CHED).

Because we know that the cost of education today will be much more expensive when our children finally go to college, saving should just be the first step. Putting money in a savings account is not as ‘hard working’ as investing; of course, you still need to make sure you have enough money for emergency situations. Setting aside money today will not cover the future cost of your child’s college tuition fee. Investing, on the other hand, allows your money to earn bigger and more substantial returns that can boost your funds for your child’s education. 

There’s a lot of information you can find online, or you can ask family, friends, and colleagues who have experience with these things about how to manage your finances. However, going online or randomly asking people for financial advice can be unreliable for the most part, and even risky. You never know if you’re getting the right kind of information or if the advice you’re getting really matches your financial goals.

The best option is to get professional financial advice from an objective, proven reliable third-party who can guide you to achieve your financial goals.

Getting good financial advice means talking to a professional who has years of legitimate financial experience and who represents an established financial institution. Of course, you can always research online or ask around to give you an idea of questions to ask or information to verify. But when it comes to actual financial advice, stick with the professionals. 

Your hard-earned money deserves nothing less than expert and professional management to ensure that you achieve your goal, which is why it is important to choose wisely so your child’s college education is not at risk.

In recent decades, many pre-need companies offering education plans were compelled to close. They were not able to fulfill their promise to cover for the education of their beneficiaries due to a number of reasons. As a result, many parents now fear that their payments will not go to their children’s college fund as it should.

What happened? Here’s the story:

Today, things have changed and it’s definitely SAFE for parents to invest in educational plans to secure the future of their children. Why?

Regulation of pre-need companies has now been transferred to IC and the Pre-Need Code was established to ensure that only best practices in fund management are practiced. For parents, this means that whatever happens, the financial security of your children’s education is guaranteed.

In the same way that we set high standards for our lovers, partners and co-workers, when it comes to investing, we should apply the same level of judgment. Look for an organization with a good track record of service and fulfillment of responsibilities. Choose one that is financially stable and has a good industry reputation; one that offers financial products and services tailor-fit to your unique needs and budget; and one that is trusted in the community. Ask other parents and research online. Investing is never a bad move, for as long as you do it with the right partner. 

1. 10 Things to Consider When Choosing a K-12 School

Link to: https://www.noodle.com/articles/10-things-you-should-consider-when-choosing-a-k-12-school

2. Money Management Tips for Parents

Link to: http://www.moneymax.ph/blog/money-management-tips-for-parents-this-school-season/

3. After near collapse, pre-need industry is alive and well

Link to: http://www.gmanetwork.com/news/story/581651/money/companies/after-near-collapse-pre-need-industry-is-alive-and-well

The key to paving the way for our children’s education is actually pretty basic and simple—save now and invest wisely. In reality, of course, it can be much more complex. Parents can definitely benefit from the expertise of a known and trusted financial services leader like Philam Life. Talk to us and get started on your child’s bright future ahead. 

In any real life goal you want to achieve - live healthier, start a family, travel the world, or put up your own business - you need the right plan to go with it. Select from our array of life insurance plans and let us partner with you to reach your dreams.