Quality education isn’t cheap. The annual tuition fee for elementary at a private school in Metro Manila, for example, could set parents back anywhere between P70,000 and P200,000. A year’s tuition for a private high school may cost between P100,000 to P250,000.
The picture isn’t going to get better in the long run; financial experts predict that a decade from now, a four-year college course could cost between P3.5 million to P9.7 million.
What’s a breadwinner with a young family to do?
The only logical answer to this is to plan early, especially if there is more than one child in the family. But how to plan? Savings can only take you so far. Placed in a bank savings account, the cash will barely earn interest, with inflation eroding its value over time.
An educational plan, on the other hand, has the potential to grow remarkable interest upon maturity, and ensures a child’s educational future. Consider the following long-term benefits an educational plan can bring:
When started early, an educational plan saves money.
The best time to take out an educational plan for children is when they are born, because premiums are always lower for younger beneficiaries. Premiums for teens and grown-ups cost more than those for children.