One of the greatest gifts you can give your child is a good education. It’ll equip them with the skills they’ll need to pursue a meaningful and well-paying career in the future.
Unfortunately, quality education doesn’t come cheap. As of 2019, the average college tuition fee hovers around P145,000 a year, according to an article cited by Inquirer.net. That doesn’t include other costs such as food, transportation, and extracurricular activities.
With the rising cost of tuition, you might be wondering how to save for your child’s college education. Fortunately, building up these funds is within reach, as long as you plan for it. Here are a few tips to get you on the right track:
1. Know your end goal
Because of inflation, the prices of goods and services increase over time. Unfortunately, this also means you’ll have less spending power as the years go by. No wonder our elders often tell us stories of how P1 used to be enough for a nice restaurant meal!
So factor in the cost of inflation when planning your funding goal. That way, you won’t be in for any nasty surprises down the line.
As a general rule, expect tuition fees to cost as much as 10% more each year. For example, if your kid’s dream college currently costs P100,000 a year, it’ll cost P110,000 the year after. If your child will be entering college 18 years from now, their first year of college will cost P551,991. This means that a four-year course will cost you a whopping P2,580,354!