Got A Toddler? This Could Be His College Tuition In The Near Future

Parents these days are increasingly focusing on financial planning and literacy, driven by post-pandemic realizations and, in some cases, their childhood economic difficulties. Some parents are working together to live comfortably and provide their children with the best education possible.

If you're one of the parents preparing for your child’s future, let’s discuss our educational plans for young children. Let’s say you are a new parent of a toddler or a five-year-old child in kindergarten. Perhaps you are saving for their current tuition fees, but what about the years to come, including college? When should parents start saving for a college education? The answer is: as soon as possible.

How much will it cost to send your child to college? According to educational platform Grit PH, college tuition fees these days range from Php 70,000 to Php 250,000 per year. Saving this amount will enable you to send your child to prestigious universities, such as the University of the Philippines, Ateneo de Manila University, De La Salle University, University of Santo Tomas, University of San Carlos, MAPUA University, Silliman University, and others.

Tuition in Philippine universities in 2024

Here are some examples of exact tuition costs in 2024, posted by different universities:

1. University of the Philippines

Being an Iskolar Ng Bayan would cost you Php 2,000 per unit. So taking an average of 21 units per semester will cost Php 42,000 per semester, or Php 84,000 for one school year. Full info here.

2. Ateneo de Manila University

Tuition and fees for Ateneo are charged on a semestral basis. Ateneo estimates Php 98,516 for a semester with 20 units, or around Php 200,000 per year.

3. De La Salle University

Tuition costs per unit range from Php 3,236 to Php 3,860, totaling Php 67,956 to Php 81,060 per semester or Php 135,912 to Php 162,120 per academic year. Check its fees table here.

4. University of Santo Tomas

Tuition and miscellaneous fees for one term range from Php 63,412 (College of Arts and Letters), to Php 68,839 (College of Engineering) to Php 75,868 (College of Nursing). That's approximately Php 126,000 to Php 150,000 for one academic year.

These figures are expected to increase by around 3-5% per unit in the coming years due to economic factors such as rising costs for goods, services, and operational expenses. Parents should anticipate that tuition fees will continue to rise, and saving alone might not be sufficient.

List of investment opportunities and educational plans 

If you're interested in building a college educational fund for your child, here's a list of investment opportunities available:

1. Pag-IBIG MP2 Savings

MP2 stands for Modified Pag-IBIG 2 Savings, a voluntary particular savings facility for Pag-IBIG Fund members, who wish to save more and earn more dividends within a 5-year maturity. It is different and separate from Pag-IBIG's regular savings program. It offers a dividend rate ranging from 6% to 8%. Read how you can start your Pag-IBIG MP2 savings here.

Parents also shared their insights on whether investing in MP2 is better than getting an educational plan. Read the article here.

2. Manulife Education Builder

A life insurance plan with an investment component, providing financial preparation for your child's future education needs. You may opt to save for a 4-year or 5-year college degree. When your child reaches 18, you can use the accumulated funds to help pay for tuition fees. In the event of death or disability, required payments can be waived, ensuring your child continues to receive financial support until they are 21 or 22, depending on the Education Builder plan you select. Read more here.

3. AXA Educational Plans

AXA offers customizable plans with annual payouts for college expenses and optional riders for additional benefits. You can choose from two plans:

AcademiX will help you customize your plan depending on how much your child will need for college. If you pay for at least five years, your child will receive annual payouts for four college years, plus a graduation gift. Read more about it here.

Meanwhile, AXA Academic eXentials is a more conservative plan that offers more affordable, guaranteed benefits. Choose your monthly payment for five years, starting at P1,500. Cash benefits begin at P124,000, and you decide when your child starts receiving them.

4. PHILAM Life/AIA Future Scholar

Secure your child's education with their comprehensive plan, featuring two key components: Guaranteed Savings, ensuring cash payouts throughout their four years of schooling starting at age 18, and Investment, offering long-term growth potential through expertly managed funds. Parents can choose between a 5-year payment term or until their child turns 17. Additionally, they can opt for optional life insurance coverage, providing a lump-sum cash benefit in case of your passing or total and permanent disability before your child reaches 18. 

5. SUN FlexiLink

An affordable plan with flexible premium payments and the option to add riders for extra financial protection.

This affordable plan could be ideal for those looking to save for their child’s future education with a tight budget. The premium payments are flexible, and you can withdraw partial funds if needed. Moreover, these plans allow you to add riders for extra financial protection in case of accidents.

In addition to these flexible payment plans, Sun Life provides options requiring a single payment, such as Sun MaxiLink One, Sun MaxiLink Dollar One, Sun FlexiLink1, and Sun FlexiDollar1. Read more about it here.

Education is an invaluable heritage we can provide for our children, laying the foundation for their lifelong success. It's essential for parents to prepare for their children's bright futures by investing in education.

Read how a mom taught her kids to be money-smart, they eventually paid for their college tuition here.