It's common knowledge that private school education is very expensive. I stumbled upon this website wherein the author tackles the cost of education in the Philippines and how much would the current tuition fee rates say, 10 years from now. My eldest is in the 6th grade. That would leave me with 4 years to save and pool funds to cover his university expenses. We haven't talked about which school he'll eventually go to. It'll soon be a hot topic in the family.
In 1991, my tuition fees in DLSU-Manila was around Php7,000++ and that was already a full term load. A full load would mean carrying 18-21 units per trimester. My course back then was Industrial Management Engineering. When I shifted to Business Admin, the tuition rose to Php13,000++ per term. That was in 1993. According to the comparative table in the website I've mentioned earlier, in DLSU, each unit costs around Php2,045. Multiply that by 18 units, that gives you Php36,810 per trimester. In a year, that's a total of Php110,000! And that is the going rate NOW.
As a parent, what sort of preparation should we do?
Savings tops the list. The savings could also be invested in long term securities such as mutual funds, t-bills and the like to yield higher interest. But being financially inept like me, I wouldn't put my money on financial instruments I don't understand.
Other than savings, how about education plans?
Sorry to say, but I'm not an advocate of education plans. The rate of inflation is much, much higher than the interest rate where your funds are invested. Remember the CAP meltdown? As for the fixed education plan i.e. you buy a Php100k now and encash the same amount say, 10 years after. Depending on inflation, Php100,000 after 10 years is not a lot. The parents would still have to shell out money to fund their child's college education.
Be an OFW? Migrate?
It's a very tempting option, honestly speaking. A number of my peers have migrated and I, myself, was a product of an OFW family.
Naturally, if one is well-off, this wouldn't be a problem. The elite can even send their children to study abroad.
Going back to my original topic, the idea of being an OFW or immigrating to another country is always at the top of my head. I know that this would entail sacrifices but the end result of it all is for my kids' better future.
Tuesday, November 4, 2008
Education expenses 10 years from now
Labels: Education
Posted by Mari at 11/04/2008
6 comments:
i tried not to worry but i couldn't help it esp. now that i don't have a kid of my own yet.:(
i think i will have to work 24/7 for my kids education by that time.
Hesusmaryosep, if that's the rate of education now, how much more when my daughter steps into college. E nursery palang sya ngayon. I have a feeling I have to stay here till I retire at 60 to fullfill that.
nyl - the key factor here is to save as much as you can when you're still single. because once you have your own kid, expenses are unstoppable.
blogusvox - same here. i may have to work till my 60s. sana dumami ang quality public education sa atin. UP at 1k per unit is expensive. i'm looking at other schools of the same caliber.
I am shocked ! The cost of education has gone haywire and on top of this, jobs aren't easy to find as soon as one graduates :(
bwzone - exactly! i'm still hoping that things would get better. as to how and when, i don't have the slightest idea. :(
Tuition fees have become ridiculously expensive. With those rates, one has to be earning an executive's pay just to afford them.
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