How to Start Saving Up for Your Child’s Tuition Fund

Education is an integral part of the Filipino culture and way of life. Remember how your elders would say that your degree is the most valuable family heirloom they can leave you with? Unlike most material commodities, which are temporary, education has a more lasting impact on one’s life.

Now that you’re a parent, it’s your turn to pass the gift of education to your child. To give him or her the best education possible, you need a sound financial strategy to ensure that you’ll be able to provide for all their educational needs.

Here are some ways you can follow to save up and finance your child’s tuition fee and other expenses.

1. Set your tuition fund goals.

Before you set aside a tuition fund, you have to determine first the school your child would attend. Tuition fees differ from one school to another, so make a thorough check on how much your target schools are charging for the current academic year all the way until your child finishes school. It’s smart also to note that tuition fees are increasing by up to 7% yearly.

When you have this information, it would be easy for you to calculate the total cost you’ll be spending for the duration of your child’s schooling.

Take the time to get an accurate computation of your income, expenses, and budget.

  • How much do you earn every month or every year?
  • How much do you spend on necessary expenses such as food, utilities, and transportation?
  • How much do you spend on leisure activities and items?
  • How much is left over after all of that?

Needless to say, your financial situation is your primary consideration in setting your tuition fund goals as well as in selecting a school.

2. Create a savings strategy.

Having a savings strategy means regularly accomplishing a series of actions to grow your tuition fund. A good rule of thumb is that you should keep adding considerable amounts of money to the tuition fund.

You could start by putting 20% of your income into the tuition fund every month, while the remaining 80% becomes your family’s working budget. Part of your bonus or any other work incentive you receive should go to the fund, too.

Outside of your regular job, you might consider setting up a small business or getting freelance work to augment your income and savings. Another strategy to consider is getting a cash loan. The funds acquired from your cash loan can be allocated to a short-term or long-term investment that you and your child can later benefit from.

3. Invest your money.

Even if you are maintaining a savings account with your bank, you also have the option to go into investment. Among the different types of investment, educational plans are a popular choice among parents.

Also called pre-need plans, this type of investment lets you prepare for your child’s future education. Thus, it’s usual practice for educational plan providers to collect payment for your child’s tuition fund within a locked-in period ranging from 5 to 18 years. Upon completion of the lock-in period or depending on the terms and conditions of your plan, you’ll be receiving the payout to be used for your child’s studies.

An added benefit to many educational plans in the market is that they come with life protection insurance. This means that if anything unexpected happens to you – which might affect your capacity to pay the remaining balance in your educational plan – your child will still be able to continue their education.

4. Track your tuition fund’s progress.

Starting a tuition fund is only the first step in your financial journey. As you go along, you should assess if you’re accomplishing or lagging behind in your goals for your child’s education. By monitoring your overall performance in saving up, you’ll know if you need to increase your target savings in time for your child to attend school.

5. Find a loan that you can afford.

You could also source funds from financial companies that offer online cash loans. In particular, Cashalo lets you borrow money, which you could use to take care of your child’s school fees. These expenses may range from minor ones, such as projects and daily allowance, or major ones, including field trips and school bus service fees. Cashalo’s mobile app makes borrowing money fast, easy, and affordable for anyone who’s qualified to use the service.

6. Preparing for Your Children’s Education and Future

Financial preparedness can go a long way in securing a bright future for your child. As parents, you are responsible for making sure that your children go to school and receive a quality education.

Cashalo envisions that through its online cash loan service, you would be able to afford to pay for your child’s education. With Cashalo, you have a partner in supporting your child’s academic journey through and through.

 

Need extra money for your child’s education? Apply for a Cashalo loan and get approved fast!