Why Having a “Plan B” is Important in Planning Your Child’s Education

“What is your greatest dream for your family?”

This is the question I always ask every time I meet married couples or single parents. And it always amazed me that their answers are always the same: to give the best education to their children.

And those were the exact words I heard from the couple that I met two weeks ago. I could feel their enthusiasm and desire to start preparing for their children’s future. The couple is in their late 20’s, both working, and have two children aged 5 and 1. After considering all the factors such as their preferred university and current tuition fees, we came up with the projected total cost of education for their two children. It would cost them around P3,000,000.

From their case, we can see that they have more than a decade to save for their children’s college. This is an ample amount of time where their money can grow way beyond their saving accounts’ interest if invested in the stock market.

But what if one or both of the parents are taken out of the picture? What would happen to their children’s future?

This is the common story we see in television dramas or we hear from our friends or neighbors: the parents died, then the child stopped attending school, started working even at a young age, and sometimes get involved in vices or crimes.
And you don’t want this kind of story.

That’s why aside from your PLAN A, which is saving or investing for your child’s education, you need to have your PLAN B– you need to be protected through a life insurance. The good news is you don’t have to think or devise your own ways on how to execute your PLAN A and PLAN B, because Insular Life is here to help you with your needs and to achieve your goals.


You can now start saving and get protection with Insular Life’s prime Education Package called Wealth Assure-Education. Let me show you the benefits of this plan using the above case:

*Not guaranteed since money is invested in the stock market.

Based on the illustration, with an annual investment of 90,000 each for 10 years, or a total of P900,000 each, the couple can be assured that whatever happens, their children’s future would not be at stake. The investment value will be used as college education fund and life insurance will serve as a protection if ever something will happen to the parent. You can also see that there is as surplus from  your projected cost of education. You can use this to continue the plan which can be used for your retirement, or use this amount as a graduation gift to your children, or to start a business. It’s like hitting three birds with one stone.

But what if the couple decides to go only with PLAN A and save the same amount in a time deposit? Let  us see the illustration below:


If the couple will choose time deposit as their investment vehicle for their children’s education, there will be a deficit by the time each of their children reach 18 years old. If ever the parent dies during the saving years, the children would not receive proceeds from life insurance which will replace the contribution of the parents for college funding. Mind you also that the effective rate of return is lower compared if money will be invested through Wealth Assure-Education. Take note that only money intended for short term goals or for emergencies should be invested in time deposit or saving accounts but for your long term goals, you should go for instruments that earn higher than the inflation rate.

Parents, do you have your PLAN A and PLAN B in securing your child’s future? Now is the perfect time to plan. Later on, your child will have a different and the best story to tell because you choose to plan and act now.


If you want to start planning your child’s education, let’s talk. I will be willing to help you achieve your family’s goals. You may reach me through my email,sarah.grace.esteban@financeph.com.
Originally published at www.financeph.com


Sarah Grace N. Esteban, CPA is a financial advisor at FinancePH and the Director of Publications and Communications of the League of Young Financial Educators (LYFE), a non-profit organization which seek to help young individuals to be financially literate. Aside from her advocacy, she loves to write because she believes in changing the world, one reader at a time. You may reach her through her personal blog www.sarahgraceesteban.com.

What Parents Ought to Know About the Cost of Education

According to the latest Functional Literacy, Education and Mass Media Survey (FLEMMS), one in every ten Filipino children was out of school in 2013 and among the reasons is the high cost of education.

The reality is not only the prices of canned goods, transportation fare, or your favorite meal in a restaurant are affected by inflation rate, but also the education cost.

Assuming that today’s annual tuition fee costs P80,000 and considering an annual increase of 8% per year, the tuition fee would be around P320,000 18 years from now and you would need a minimum of P1,440,000 to support your child for a 4-year college course.


But what to do these figures tell us?

You need to plan.

Whether you are 5, 10 or 18 years away by the time your child reaches college, you can actually start planning now. You can start saving and investing regularly for your child’s education and you won’t worry about the high cost of tuition fees few years from now.

Start now. Plan now.





Source: (https://psa.gov.ph/content/out-school-children-and-youth-philippines-results-2013-functional-literacy-education-and)

PS. If you want to sit down with your plans, kindly fill up this form:

Just love,



Every parent’s dream is to give the best education for their children. That is why parents do not mind the long hours of working, stressful traffic, and even being away from the family just to give the best to their children. This serves as their biggest “WHY”.

But sometimes, this dream became part of the long list of “I-wish.”

“I wish I sent my child to that university.”

“I wish I could afford that course for my child.”

“I wish I prepared myself financially and made a plan few years back for my child’s education.”

But let me ask you this question: What if you know a way to avoid those wish lists few years from now, are you willing to do something about it?

All success starts with a plan. If you want to have the best birthday party for your child, you plan. If you want to have a perfect family weekend getaway, you plan. And if you want to have a quality education for your child, you should plan as well.

But why education planning is very important?

  1. The cost of education today is not the same as the time your child reaches college.

In the early 1980’s, the cost per unit at Ateneo de Manila University is 224 pesos or 4,700 pesos per semester. Today it will cost you around 89,000 pesos per semester. Imagine, what would be the figures 15 years from now? This is the power of inflation.


  1. This is not just about you.

This is not just about you. This is for the people you love: your children.

Children with their parents assisting them in the homework

At the end of the day, you will plan because you love.

Love keeps you going despite the odds and hardship.

Love pushes you to your limit to reach you dreams.

And love reminds you that all these things are not for yourself, but for the people you love.

Just love, 




PS: If you want to start planning for your child’s education, let’s talk.

(Sources: http://www.absc-cbnnews.com and www.theguidon.com)