kittzy07Saving for Education
Once, my cousin asked for my opinion on what educational plan to get for her kid. I remembered I got an educational plan for my eldest daughter when she was just a year-old. I was so excited to save something for her, for the first time, from my savings. Because, usually or most of the time, it was her grandma who was always spending for their clothes and toys. Because of my excitement, I miscalculated my budget for it. I allotted more than what I could give for the educational plan. It was eating up our expenses big time. Sad to say, I wasn’t able to continue it. It was a big mistake because I already deposited a huge amount for it.
Because of this I researched some good links to help me and my cousin decide on getting an educational plan. Here are some good links:
How to save for kids college education
Really Long Link
6 Reasons not to save for kid’s college
Really Long Link
First link would only be applicable for those who are living in the Philippines. But you could also adopt it by changing the variables for the price per semester in whatever school you wish your child to enrol in the future plus add 10-15% inflation rate per year. I calculated mine and it totalled up to $15000 here in the Philippines for a 5-year course for only one child. And that’s just college tuition fee. School supplies, shoes, uniforms, books and transportation are not yet included. What about their high school and elementary days? One of my friend even joked that she will never have a child because of the huge expense that you will face in sending a child to school. And I’ve got two children.
The second link “kinda” lifted some pressures in my back because you can get student loans later on for your kid and also scholarships if they are smart enough. That it is better to save first on your retirement loan because you can’t get any for that. That it is better to invest on properties because you can use it later on to pay for their tuition fee. To quote it:
“If you have to choose between putting money in the kids' college funds and buying a house, buy the house. You may be able to pay tuition with a home-equity loan when the time comes.”
Another thing, it’s more financially challenging to raise kids in the earlier part of their lives to even think of getting a huge percentage of your income to allocate for their college fund. I think it’s better if you could save some if you have “more than enough”.
Even if I didn’t want my child to help in saving up for their future because that’s my responsibility, the link above suggests making the children help in chipping-in for their fund so they will learn to become responsible and to value their education because it is, anyway, from their hard-earned money.
I think saving for your child’s “future” is not bad just as long as you have enough for “today”.
Because of this I researched some good links to help me and my cousin decide on getting an educational plan. Here are some good links:
How to save for kids college education
Really Long Link
6 Reasons not to save for kid’s college
Really Long Link
First link would only be applicable for those who are living in the Philippines. But you could also adopt it by changing the variables for the price per semester in whatever school you wish your child to enrol in the future plus add 10-15% inflation rate per year. I calculated mine and it totalled up to $15000 here in the Philippines for a 5-year course for only one child. And that’s just college tuition fee. School supplies, shoes, uniforms, books and transportation are not yet included. What about their high school and elementary days? One of my friend even joked that she will never have a child because of the huge expense that you will face in sending a child to school. And I’ve got two children.
“If you have to choose between putting money in the kids' college funds and buying a house, buy the house. You may be able to pay tuition with a home-equity loan when the time comes.”
Another thing, it’s more financially challenging to raise kids in the earlier part of their lives to even think of getting a huge percentage of your income to allocate for their college fund. I think it’s better if you could save some if you have “more than enough”.
Even if I didn’t want my child to help in saving up for their future because that’s my responsibility, the link above suggests making the children help in chipping-in for their fund so they will learn to become responsible and to value their education because it is, anyway, from their hard-earned money.
I think saving for your child’s “future” is not bad just as long as you have enough for “today”.
