It’s the time of year when parents with kids in school worry about where to find money to pay for their tuition and other school fees. At hindi nakatulong yung balita na 364 na private colleges and universities sa bansa ang magtataas ng tuition fee ngayong darating na school year 2008-2009.

Based on the information provided by CHED, the average tuition fee hike this year is 9.93%. Schools in the Bicol Region had the highest percentage increase at 17.64%, followed by Ilocos (Region 1) with 14%, Calabarzon (Region 4A) with 12.01% and Mimaropa (Region 4B) with 10.64%. In the NCR average rise in tuition fees is at 8.51%

As responsible parents it is our obligation to prepare for our children’s education long before they step into college otherwise you may not have enough funds to cover the cost. Walang ibang pupuntahan ang tuition fees kundi pataas. Ang tanong na lang ay kung gaano kataas.

Check out the table below and see how much you could be paying for your kids’ college education. If your child is seven years old today he will enter college in 10 years. If tuition & other school fees stand at P30,000 per semester today, in 10 years it will already cost P64,768 per semester (assuming an annual increase of 8%). Expect to pay twice as much if you send your children to the leading universities. This does not include yet school allowances & other related expenses which could total to about the same amount.

Kung ngayong taon ka lang nagkaanak, asahan mo na malamang aabutin ng P1 milyon ang gagastusin para mapagtapos ang iyong anak sa college. If you have more than one child, then you have a bigger financial challenge ahead of you. Hindi na uubra na sasabihin mo lang na “bahala na!” You have to plan now.

There are three ways to fund your children’s college education.

1. Pay as you go

You look for the money to pay for tuition fees only when your child is already in college; which is not a very good idea. You cannot say for sure that you will still be gainfully employed when that time comes. This is typical Pinoy attitude; kung kailan andyan na ang bayarin tsaka lang nagkakarandarapa na maghanap ng perang pambayad. The usual solution: nangungutang.

2. College education plan

This plan allows you to save systematically today for your children’s education needs in the future. Be sure to get your plan from reputable and stable companies which will still be around when your children steps into college. Many parents are left holding a useless piece of paper dahil yung pinagbilhan nila ng education plan ay hindi na nag-ooperate or hindi makapagbayad sa tuition ng kanilang mga anak.

3. Save and invest

Instead of an education plan you can save, invest and grow the money yourself. (This is what pre-need companies are actually doing, pooling the money of plan holders and investing it so that it grows substantially to cover the amount promised and make a profit.) If you have the time and knowledge to seek out other investment opportunities (like mutual funds and stocks) and have the discipline to invest consistently in those products, your money has the potential to grow bigger than if you place it in an education plan.

Ngayon na ang tamang panahon para maghanda sa mga gastusin ng inyong mga anak sa pagpasok sa kolehiyo. Next year will be too late. You just can’t go on hoping & praying that tuition fees will stay the same in the next 10 to 15 years because that won’t happen. You should not anticipate, too, that your brilliant child will get a college a scholarship. What if hindi mangyayari? Finally, wag i-asa sa lotto o sa ano pang sugal ang edukasyon ng iyong mga anak. Plan for it… plan now!

Last update: May 19, 2008
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