Recently, GMANews.TV on their Facebook site some schools’ annual tuition fees. Especially this June, a lot of parents are probably thinking about their child’s education fund. Below are some tips and ideas for parents who have an immediate need in terms of paying their child’s tuition fees.
Table from GMANews.TV’s Facebook page
Preparing for your children’s education is best done before they are entering school age through an educational savings fund with the support of a reputable financial institution that will yield you the projected amounts when needed at lower the cost when the time comes. Insurance companies have designed a savings plan where the child is insured and the parent as payor or owner is covered and benefits from a contingent fund should they pass on or become disabled.
If this was not set up earlier and you are faced with funding your child's education now, consider the following options:
Borrow from office cooperative the annual tuition payment and pay the coop by monthly installment. This will greatly reduce the amount you have to pay the school possibly up to 12%, while you pay your cooperative a monthly that's lower in interest rates of perhaps 4-5% per annum plus you get dividends as member of the coop for using their facility.
Borrow from SSS or GSIS the annual tuition amount and have it salary deducted by the company on a monthly basis. Again, you enjoy the same discounts, if not lower, plus ease of payment as in no. 2.
Borrow outright from your company, or request for an advance against future bonuses or even the mandated 13th month if agreeable to the company.
Use your credit card if school accepts it and enroll the tuition under their 0% monthly installment program.
Allocate company bonues and extra income during Christmas time to your child's education.
Please remember that these are all options for your immediate need. There are other more viable options for long term investment and savings for your child’s tuition. These should be the first recourse of parents.
It’s also good to remember that, should parents borrow to satisfy an immediate need like their child’s tuition, they should also manage their debt wisely and make sure to have a solid plan for paying off the loan.
About the Author
Mayang Sison-Pascual, Personal and Family Financial Consultant of Manulife, Philippines. Mayang also does seminars on Financial Freedom and Abundance. For further inquiries contact her at 0920-947-3724 or 636-2721 loc. 228. Mayang is also a family counselor and mother to a brood of five: Ana, 26 years old, Tala, 24 years old, Dino, 21 years old, Bolo, 15 years old and Eio, 9 years old.