When it comes to securing the future of your children, one of the best gifts you can give them is a good education. This is especially true for Filipino parents who believe that being able to send their children to top schools in the country or abroad is a legacy that they can leave to help them achieve their full potential in life
But there’s no denying that costs for education continue to rise every year, especially with inflation at an all-time high. If you are wondering how much you need to save to send your child to their dream school, here are a few of the things you’ll need to consider:
Tuition fees – while some colleges offer free tuition under the Commission on Higher Education’s (CHED) Access to Quality Tertiary Education Act, many of the country’s top universities are private institutions whose tuition fees can cost PHP 100,000 or more, according to a recent report. You also need to account for inflation. According to CHED for AY 2021 - 2022, the national average rate of increase in tuition per unit is 4.74 percent, while the national average rate for other school fees is 10.61 percent per semester. For example, if a parent wants their six-year-old to study in a private university 10 years from now and their preferred university’s tuition is currently at PHP 110,000, it would then be around PHP 285,311 by the time they enroll. When compounded by the time the child reaches their 4th year in college, this would amount to PHP 379,749 per year.
Residence and Transportation – If you are sending your child to a college abroad or far from where you live, you’ll need to consider their daily transportation allowance or even renting a dorm room or condo unit near where they’ll be studying. Dorm rent for sharing with three to four other housemates can go as high as P6,500 around the university belt area.
Gadgets – In today’s digital age, students consider laptops and mobile phones as must-haves for learning. While it’s possible to get a good budget mobile phone for around PHP 10,000, laptops for online classes and other schoolwork can range from PHP 20,000 to 30,000. You’ll also need to allocate budget for your child’s Wi-Fi or data connection.
Books and School Supplies – Finally, allot around PHP 20,000 to 25,000 annually for books and supplies such as notebooks, writing materials, and special equipment that your child will need every semester, as these have also been affected by the rising prices. Take into account as well that not every field has the same amount of expenses. For example, if you’re raising a future doctor, they will take longer to finish their pre-medical course and their medical school education, while science courses may have additional laboratory expenses.
Putting all these costs together, you will easily end up with a budget of over six figures in a year – which is not a sum that can be saved quickly or easily for most. Furthermore, there are considerations that need to be factored in such as unplanned emergencies or in case you pass on. That’s why having a financial solution that protects you from life’s uncertainties is needed so you can focus on working your way to your goals such as securing your child a bright future.
One of the ways to secure your child’s education is to get a comprehensive insurance plan like MyLifeChoice for Education, AXA Philippines’ most flexible insurance and investment plan designed to ensure your child’s education until college no matter what happens. MyLifeChoice empowers customers by enabling them to customize their own plan according to their unique needs and priorities, budget, desired payment term, and protection coverage.
MyLifeChoice for Education ensures your child’s education through Bright Rider Plus, which provides guaranteed payouts in case of the insured’s untimely demise. These payouts will start immediately upon the passing of the insured and can help cover your child's education expenses until graduation. You can also personalize your protection coverage from 7x up to 25x of your basic annual premium.
MyLifeChoice also includes waiver of premium and accident coverage benefits, which means that future payments are waived in case of disablement and cash benefits will be received for injuries due to accidents, respectively. Your plan can also be further enhanced with supplementary benefits to further strengthen your protection coverage depending on your current financial needs.
Available in a 7-year payment term, MyLifeChoice for Education enables you to select from a range of professionally managed funds that are invested locally and globally to create a personalized portfolio that suits your investment profile. Your potential investment earnings can be added on top of your child’s education fund, which he or she can use for his or her future college expenses. To further support you in securing your child’s education, this policy includes a start-up bonus equivalent to 70% of your first-year basic annual premium in an AXA fund of your choice.
“Education is something you can leave behind for your child that they can keep with them forever, but inflation coupled with rising prices of goods requires careful planning from parents now more than ever. Protecting your child’s education fund is possible with the right partner, such as AXA Philippines. With the help of MyLifeChoice for Education, seeing your child march onstage with their diploma need not be a pipe dream,” said Nandy Villar, AXA Philippines Chief Customer Officer.
For more information or get a personalized quote, visit axa.com.ph/mylifechoice/education.
