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Why do you need to plan for your children’s education?

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Jake

 

I graduated from De La Salle University, one of the Top 3 Universities here in the Philippines, and also has the most expensive tuition fee among the three. During my college years, my parents are incapable of paying DLSU's school expenses. Fortunately, my parents took an education plan (when I was one year-old) which covered almost 80% of my total school expenses. The total amount of money invested by my parents was around 23K, but it was able to cover almost 450K worth of tuition fee expenses in DLSU. Do you think it's worth investment? DEFINITELY.

According to CHED, tuition fee increases around 12.25% per annum. On top of that, there are also increasing miscellaneous expenses (i.e. allowance, food, uniform, books) caused by inflation rate. Average inflation rate is around 5.8% (based from 1995-2009).

If we are to consider this annual increase, this will be the projected annual tuition of known universities here in the Philippines

  
2010
2015
2020
2025
2030
UA&P
201,600
359,271
640,257
1,141,000
2,033,375
DLSU
139,165
248,006
441,971
787,635
1,403,644
ADMU
114,174
203,469
362,602
646,193
1,151,580
Assumption
106,237
189,325
337,396
601,272
1,071,526
San Beda
80,832
144,051
256,712
457,487
815,287
UE
60,279
107,423
191,439
341,162
607,985
UST
56,778
101,184
180,320
321,348
572,673
AMA
53,071
94,578
168,547
300,367
535,284
Lyceum
47,628
84,878
151,261
269,561
480,385
UP
45,360
80,836
144,058
256,725
457,509
Holy Spirit
41,001
73,068
130,214
232,054
413,544

You don't need to plan for your children's education if you plan to school your children in a 2 year vocational courses. But of course, as a parent we would like to provide them, as much as possible with the best quality education there is. If we are to anticipate the future costs of these universities, do you think your hard earned savings is enough? That's why you need to plan for your children's education.

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