Education Planning

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Are you ready to send you child to the best schools in spite of the rising cost of education?

Every parent has great hopes and dreams for his/her children. This is why parents aspire for the best education for their children. If the cost of education remains the same, perhaps your current income can support quality education for your children as they grow. But the challenge for most parents is not having enough savings to keep up with the rising cost of quality education.

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Consider the cost of college education by taking a look at some schools in the country today.

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K to 12 Basic Education Curriculum now in force

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Aside from the regular tuition fee hikes, we must also consider the K to 12 Basic Education Curriculum (BEC) Program which is now in effect.

As you can see, your child now enters college at age 18, instead of 16. These extra years equate to higher and additional education costs, which requires us to set aside more funds in order to ensure the best future for our children.

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Let me show you how you can be better prepared for your child’s college education. By making your money earn more, you can build an education fund for your child and keep up with the regular tuition fee hikes.

The secret to building funds for the future rests on 3 factors: time, money and interest. When it comes to TIME – we must start saving as early as we can. When it comes to MONEY, we must save as much as we can, as regularly as possible. And when it comes to INTEREST, we should find interest rates that better-than-inflation.

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Maximize your time, money and interest, and you can build that education fund for your son/ daughter.

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Perhaps you’re wondering how much tuition fee will cost by the time your child enters college.

In this example, the child is age 1 and has 17 years to go before college. The parents estimate the current annual tuition fee to be 100k in their chosen university. And we also followed CHED’s annual rate of increase of 12.25%. This is what we will use to project the future value of college tuition.

Today’s annual tuition fee of 100k will be equivalent to 713k in 17 years. This is only good for Yr1 in college, so then I add the remaining 3 years, still increasing the tuition fee by 12.25% each year. That brings the Total Education Fund needed to 3.4 Million.

So how do we address this gap? Let me show you some sample solutions I’ve designed for my clients.

Recommendation #1: For Parents who are still under-insured

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This first one is a 10 pay savings program which provides an insurance coverage on the Parent. This is recommended for Parents who are still under-insured so that we can address 2 goals simultaneously. For an annual budget of 151,440, as opposed to 251,874 in time deposit, for 10 years, we can build the targeted College Fund of 3.4 Mil.

Another advantage of this from Time Deposit is that cash proceeds will be given to the surviving family should anything happen to the parent prior to the child entering college. The 2 Million insurance coverage will not only serve as income for the family but it will also augment the value of the college fund.

Recommendation #2: For parents who are already adequately covered and want to focus on accumulating funds

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A purely investment vehicle that offers my clients higher potential returns. The annual budget of 126,801.25, as opposed to 251,874 in Time Deposit, for 10 years builds the targeted College Fund of 3.4 Mil at age 18. You can also make additional investments anytime and even after 10 years to grow your fund faster and have more money to spend for your child’s future.

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Now that you’ve seen how we can close the gap with various Sun Life solutions, I’m sure you’re curious to find out how much Education Fund you will need for your child’s college tuition. The good news is that I can calculate this for you very quickly. CONTACT US OR REQUEST FOR AN APPOINTMENT

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Depending on your budget, we can compute how much you’d need for your child’s education. These are the steps that we will go through:
CREATE

  • We will identify and prioritize your educational fund needs and shortfall
  • We will compute how much those will cost in the future and adjust based on your financial situation
  • We will develop a financial plan customized to your goals and budget

IMPLEMENT– We will choose the appropriate product solutions for your life goals
REVIEW– We will track your progress in achieving your life goals

Money Monkeys can assist you:

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