Mom Shares Practical Tips to Prepare for Your Child’s Tuition Fund

Yearly tuition fee increases are enough to make any parent anxious. When your kid isn’t at a school age yet, you can’t help but wonder: “How much will I have to pay by then?” Thinking of what’s to come can be quite stressful, but a bit of planning and preparation may put you at ease.

Preparing ahead is a wise way to support your child’s future dreams! So, we talked to Bianca S. Halili, a practicing licensed financial advisor who has ten years of experience in the financial services industry. As both a Mom and a finance expert, Bianca knows a thing or two about prepping for a tuition fund, and she shares her professional tips right here.

Bianca says that as soon as you’re considering to have a child, it would be ideal to start saving money for their education already. When it comes to saving and investing, financial advisors would always say that the best time to start was yesterday. The earlier you begin saving or investing, the better.

“Do not wait for your income to become bigger before you start to save. Saving is a discipline. Start now. In saving or investing, time is your biggest ally.” Bianca S. Halili, Financial Advisor

Tuition fees show an average increase of 7% to 10% per year among private schools. To have an idea of how much you should be saving up, try to get the current tuition fee of your preferred school then add the 10% increase yearly up to when your child will start their studies.

“We see school fees become more and more expensive yearly.  An average of 7 – 10% yearly increase are seen in private schools. A family’s tuition fund will depend on what school they plan to send their kids.” Bianca S. Halili, Financial Advisor

Being intentional about saving means being conscious about making it a priority even if you’ll have to lessen your spending in other areas. Let’s say, eating out or shopping for items other than necessities. There are also a number of saving and investment plans that are easily accessible for individuals. Bianca says that we’re very fortunate to have such financial options like pooled funds, and insurance products bundled with investments. These are some ways to help you set aside and earn money passively for your specific goals, in this case, your child’s tuition fund.

“Find a vehicle to save that is not easily withdrawable or cannot be easily touched.  So that you won’t be tempted to use it for other things.” Bianca S. Halili, Financial Advisor

This might not sound like a financial tip at first, but even the finance experts would tell you to make health a priority. Health is, of course, your wealth. Building your tuition fund will heavily rely on you earning income. One of the major obstacles to earning money is being physically incapable of doing so. That’s why Bianca would tell Moms and Dads to make their health and wellness number one, too.

“I make it a point to secure the life and health of the parents first, so that whatever happens, their children’s dreams and aspirations can continue.  In other words, bayad ang tuition kahit hindi maka-work si Mommy and Daddy.” Bianca S. Halili, Financial Advisor

Becoming aware of and understanding different types of financial plans, saving techniques, and investment opportunities is also a way to empower yourselves. Finances are personal, and a plan that works for another family might not necessarily work for you. Bianca recommends studying and researching about different financial products that will suit your lifestyle needs. You might also want to try connecting with a financial professional whom you can trust to teach you about the effective ways to save for your tuition fund.

“My advice to parents is to always have an open mind.  Try to educate yourself, read and attend financial seminars that are given for free.  Listen to financial professionals as they show you various options available at present.” Bianca S. Halili, Financial Advisor

Tagged: / / / /

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.