The Importance Of Saving Money For College Expenses

Knowing the importance of saving money for college expenses puts you in the right direction. You are helping achieve your child’s dreams. In the Philippines and elsewhere, education plays a key role in the life of a person. And as a parent, you want the best college education for your child.

There are many educational plans out there and the right plan for your child needs thinking. Commit to a plan that you can use in spite of unforeseen events. That ensures your child’s future even when you are no longer around. Getting the right plan puts your child’s dreams forward.

Most parents dilly-dally because of the issues about the pre-need industry in the Philippines. So choosing the right company and plan is important. Will the company still be in business when your child enters college? Has it proven a track record of claims paying ability?

The Importance of Saving Money for College Expenses - Getting the right educational plan

The right plan depends on certain factors...

Projected tuition and other school expenses. You can obtain current tuition and other fees from prospect schools and universities. Ask the school for the average yearly rate increase of these fees. This gives you an idea on the amount of expenses when your child enters school.

The number of years: (a) from the start of saving to the time your child would start college, and (b) you would be willing to save. The longer the number of years of saving, the higher the return on savings. The longer you save, the lower the premium.

The amount to save monthly, quarterly, semi-annually or annually. This is your capacity and willingness to save. This also depends on the amount you want to get and the number of years of saving. Keep in mind that now is the best time to start saving.

Product Features Are Equally Important

Are there guaranteed funds given yearly in 4 or 5 years as tuition and thesis funds? Will the tuition funds increase at certain rate every year to outgrow inflation?

Are there cash benefits for textbooks, and a starter bonus after graduation? Will the plan earn dividends as supplementary benefits? Although not guaranteed, supplementary benefits enhance the yearly benefits.

Are premiums waived or fully paid in case of disability or death? Is the payor insured? Are all cash benefits paid directly to the plan holder? Is the plan flexible to pay the benefits when the time comes? This feature guarantees that your child gets the benefits when he goes to college.

These should guide you choose what's best for your child and not delay your decision to save. Delay is not in the best interest of your child's future. Acting now on the importance of saving money for college expenses helps fulfill your child’s dreams.

Click here to see my proposed educational plan to an OFW for her 10 year-old daughter.

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