First of all, I’d like to congratulate all parents for surviving another season of school enrollment.
I know it’s not easy to provide for your child’s education, that’s why I truly respect all parents who continue to work and sacrifice their own needs, just to keep their sons and daughters in school.
Over the past few weeks, I’ve received several inquiries from parents regarding how to plan for their child’s college education.
A few of them, unfortunately invested in educational plans that have gone bankrupt and are now trying to recuperate the time and money they’ve lost.
Indeed for most, if not all parents, seeing their child finish college, is among their top goals in life. And today, I’d like to help a little bit by giving a simple tip on how to make this goal a little “smarter”.
By definition, a “SMART” goal should be Specific, Measurable, Attainable, Relevant and Time-Bound.
Among these five, ‘Time-Bound’ is easiest to define as it is simply the number of years before your child enters college.
‘Relevance’, or answering the question, “Why is this goal important to you?” is also easy to resolve because I’m sure you believe that one of the best gifts you can give your child is an education.
Furthermore, there are many expenses that a parent must provide for when they have a child in college, but the largest portion is normally the tuition – that’s why I like defining this as the ‘Specific’ goal.
Now that you have a specific goal, it’s time to make it ‘Measurable’ or in other words, you need to set an exact amount for your goal by calculating how much money you’ll spend on enrollment fees throughout your child’s college life.
This is where most parents play the guessing game, but fortunately – I’ve found an online source for this data, which I’m sharing below (figures are 2012 estimates):
Total Tuition – All Terms
60,000 to 90,000
Ateneo De Manila University
Centro Escolar University
70,000 to 80,000
Colegio de San Juan de Letran
32,000 to 44,000
College of the Holy Spirit, Manila
De La Salle – College of St. Benilde
165,000 to 210,000
De La Salle University
165,900 to 210,000
Far Eastern University
68,000 to 88,000
Lyceum of the Philippines
70,000 to 80,000
Mapua Institute of Technology
100,000 to 128,471
Philippine Normal University
1,470 to 5,040
Philippine School of Business Administration
54,560 to 56,670
Polytechnic University of the Philippines
504 to 672
San Beda College
90,000 to 120,000
San Sebastian College
50,000 to 62,000
St. Scholastica’s College
82,000 to 85,000
Technological University of the Philippines
2,100 to 3,150
University of Sto. Tomas
72,000 to 112,000
University of the Asia and the Pacific
University of the East
60,000 to 80,000
University of the Philippines
0 to 45,000
How Much Will The College Education of Your Child Cost?
The Commission on Higher Education (CHED) plans to keep tuition hikes to 10% maximum every year, according to this news report. This means the figures above can only increase by at most, 10% each year.
To know how much your child’s tuition will be in the future, then use the formula:
( Tuition Fee Per Year Today ) x [ ( 1.10 ) ^ ( Years Before Child Enters College ) ]
So for example, if your son will enter college 7 years from now, and you plan to enroll him in UP, then the formula would be: P45,000 multiplied by (1.10)^7 or P87,700.
The estimate cost of tuition for your kid is P87,700 per year by 2020 (7 years from now). Multiply this figure by 1.10 for each year that your child will study in college, and you’ll get a good grasp of how much you need to prepare financially:
Estimate Total Tuition (PHP)
1st Year – Freshman
2nd Year – Sophomore
3rd Year – Junior
4th Year – Graduating Senior
Now for the last part of your “SMART” goal, you need to ask yourself if the calculated total tuition is ‘Attainable’ for you.
If yes, then you need to create a workplan on how you will achieve this goal, and then follow it through until you reach the target amount.
If not, then you have to “tweak” your goals by either changing to a more affordable school OR, finding ways to increase your current income.
Is P407,000 in 7 years attainable? Yes, it is.
Did you know that by investing only as little as P2,500 per month in the stock market, you are most likely to reach this goal through the cost averaging strategy?
So that’s it – an illustration on how to calculate your child’s college tuition in the future.
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