For many of us, we grew up hearing our parents say that the most valuable gift they can give us is education. It’s a line that can get on our nerves, but in reality, it’s something that only the middle-class and above can easily afford. According to the 2016 Annual Poverty Indicators Survey (APIS), one in every 10 Filipinos aged 6 to 24 is an out of school youth, and that roughly half of those “belong to families whose income fall at the bottom 30 percent based on their per capita income.”
For those barely making ends meet, what are they to do?
It’s the reality Jerome Valdez faces every day. As a security guard for a popular fastfood chain and with two young children, he and his wife Marie often have struggles supporting their family, as what he earns is just enough for their daily needs. On top of that, he only gets to see his children during weekends, as he works in a branch in Commonwealth while his family lives in Cavite.
Like most parents, Valdez and his wife save money so they could offer their children a brighter future. One of their hopes is that both Jeremiah, 6, and Jhaymar, 3, can finish their education and achieve their dreams. This can be a challenge for Filipinos, as 260 higher education institutions are planning to increase tuition fees at an average rate of 7%. In the De La Salle College of Saint Benilde, a semester for Fine Arts can cost up to a whopping P93,000 per semester, while an Engineering semester can cost up to P74,000. While there are alternatives that cost less, these can still be costly for some.
Check out the average price of tuition in some universities below:
- Ateneo de Manila University: P5,000 to P74,400
- De La Salle University: P7,300 to P80,300
- University of Santo Tomas: P6,100 to P77,100
- Mapua University: P8,500 to P47,400
- Far Eastern University: P8,500 to P70,100
With such costs, it’s easy to imagine why Valdez looks to the future with worry. But a ray of hope came his way when he met Rochelle Saniel. Valdez and Saniel met when Sun Life hosted the graduation of Kiddie Crew, a program at the fastfood chain Valdez works in, which allows children to join the staff to learn new skills, and make friends. Their daughter Jeremiah was part of the program, and one of Sun Life’s prizes was a variable life insurance with a fund allocation to MyFuture Fund. Valdez was fortunate enough to win, and the parents decided to use it for their youngest Jhaymar’s future education.
The insurance policy’s fund allocation of MyFuture Fund is invested in equities in earlier years to maximize its earning potential, then shifts to wealth preservation in later years through fixed-income assets. Thus, he and his wife no longer need to worry about sending their son to college.
Other Filipinos can follow their lead by planning and preparing ahead for their children’s future with the help of Sun Life, a leading global financial services company that offers a broad range of insurance, retirement, and investment products and services.
Saniel can’t stress the importance of having insurance enough. With a good plan, policyholders can earn enough money to supplement their income in later years. And for families, this will allow them to prepare for big-ticket expenses like a college education. It’s actually affordable because parents can pay little by little, on their own terms, whether annually, semi-annually, or quarterly. They just need to start when their child is still young.
Raising a family can be a daunting task, but Rochelle believes that they can thrive by following a few simple tips:
- Filipinos should start saving as soon as they start a family.
- Families should start by regularly saving 15 to 20% of their salary then spending what’s left.
- They are advised to stick to a budget and teach their kids the value of saving.
- Families should have three to six months worth their salary for an emergency fund.
Valdez is lucky to have won an insurance policy, but Filipinos can achieve the same thing. By saving little by little, making wise choices, and consulting a financial advisor, families won’t have to worry about sending their kids to school, whatever their profession. Visit advisormatch.sunlife.com
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