Cash Vs. Card: Parents Share Tips In Handling School Expenses

Having children is expensive, and one significant expense parents have to take on year after year is school-related costs. While education is always a priority, coping with the increasing costs of tuition and related expenses can also be challenging. Hence, parents are always on the lookout for ways to save and maximize their resources.

We asked the 100,000-strong Smart Parenting Village for their preferences and insights on handling big school-related expenses.

Parents' considerations and tips when paying for school expenses:

Opt for cash payment to maximize discounts

One primary advantage of paying tuition in full with cash is that many schools offer substantial discounts for full payments. Some schools also offer early bird discounts or reduced rates for full payments. Another benefit to paying it in full is the peace of mind it brings, with parents not having to track due dates or worry about substantial payments in the coming months. 

Dad of two Allen Vidal shared, “We availed early bird promo with 15% off sa cash payment. Madugo since dalawa sila and mahal yung sa kinder na tuition. Iniisip nalang namin na yung natipid mapupunta naman sa books and other school supplies.”

A mom of three, Kristelkyler Atienza echoed the same sentiment, saying, “Tuition fee paid in cash and full payment. We enroll at the earliest possible time since usually mas malaki ang binibigay na discount ng school pag ganito.”

Save well in advance

Several parents highlighted the importance of saving for school expenses a year or more in advance. This allows them to avoid last-minute financial stress and take advantage of early and full payment discounts.

Mom of grade-schooler Bles Tenorio shared some sound financial advice, saying, “A former officemate made me realize na mas mabuting ang pera ang maghintay sa bayarin kaysa ang bayarin ang maghintay sa pera. Since my daughter turned 1 year old, I opened a bank account for her with the intention of using the money saved there for her tuition when she started schooling.I prefer to pay in cash and in full para wala na akong aalalahanin.”

“I set aside an amount every month for her bank account,” she added.

Similarly, mom-of-one Jane Lee-Balacuit abides by the same principle: “For tuition fee, we pay in full kasi usually mas mura compared to installment. We save a certain amount every payout to cover the expenses needed for the next school year.”

Jocelyn Rabena, mom of two school-aged children, also makes sure to save a specific amount every month for school expenses: “Cash at full payment talaga ako palagi. Every month pinag-iipunan ko na mga bayarin at pangbili ng gamit ng kids para hindi na ako mamroblema. Nilalagay ko agad sa isang savings account para hindi magalaw.”

Pay with credit cards to maximize rewards and points

Alternatively, many parents also prefer to use credit cards, finding it a more convenient option for making large payments. They appreciate the rewards and cashback offers associated with card use. Yumi Diaz notes, “No only can we have the cash earn interest muna sa digital banks, we also earn points sa credit card and may iba din na may cashback promos. Same with supplies.

Paying with credit card allows for better flexibility and cash flow management

Another reason some parents prefer to utilize credit cards is it provides flexibility, allowing them to spread out large expenses over time without depleting their cash on hand. This arrangement can also be useful during times of financial uncertainty. Mom Szarenne shared, “Cash everything, sayang ang points at wala din naman interest. 0% interest for tuition installment sa mga cards especially sa mga back-to-school promotions nila. Then even sa stores, may 0% installment and pay after three months if you reach a certain amount.”

Other parents also shared that they use credit cards since it helps them track their spending more efficiently. Cath Lansang-Sinfuego explained, “As much as possible, we purchase everything through credit card so we can easily track our expenses.”

Always double-check installment offers

While credit card installment plans can be convenient, parents should carefully review the payment terms before committing. Make sure that the monthly payment and overall time frame are manageable.

Reuse and reduce

Several parents emphasized the importance of sustainability: reusing school supplies and uniforms to save money and reduce waste. As mom of one and Smart Parenting Village member since 2022, Sarah Francisco advises, “If kasya pa uniform, no need bumili. Alagaan lang sa laba at plantsa. Bibili na lang ng bago if hindi na kasya, or there are other parents who offer second-hand uniforms that are still in good condition for a lesser price.” This practice not only cuts costs but also teachers children the value of sustainability.

Consider online options

Online shopping remains a popular option mainly due to its convenience and cost-effectiveness, thanks to vouchers and double-digit sales. This includes school supplies. Loriephel Gonzales, mom of one,  highlights the advantages: “Sa mga gamit, hindi ako sa bumibili sa malls, puro online kasi madaming voucher na pwedeng magamit.” By leveraging online discounts and voucher codes, parents can save significantly on school-related expenses.

Granted, the choice on how to manage significant expenses like tuition depends largely on a person’s financial situation, resources, and preferences. Cash payments can offer discounts and peace of mind, while card payments offer convenience, rewards, and flexibility. Whether choosing cash, card, or a combination of both, parents should always remember that the key lies in planning ahead, budgeting wisely, and utilizing all available resources to maximize savings and minimize stress.

Read here for the amount you'll need to send your child to college in 2034.