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Is it advisable to get an educational plan for my child?

Posted by on April 9, 2013 5 Comments Category : General Information Tags :

Is it advisable to get an educational plan for my child? What are the advantages?Or it just the same if I just put the money on my savings bank? Please advise. Thanks

5 Comments



  1. nette on Apr 23, 2013

    Its probably best to put your money in two baskets. Get an insurance plan that earns interest as long as you don’t use it and put the other half on a bank the earns you more interest as you keep pilling it up as the years go on, since you won’t be touching those accounts unless of emergencies. With a lot of insurance plans company closing up, better to lessen your risk while increasing the benefits. Rural banks offer higher interest btw. Hope this helps



  2. Ron Bryan Sun Magsalin on Apr 24, 2013

    It is always best to prepare for your child’s future. You actually have around 16 years to prepare for their college starting from your child’s birthday. Where to put your savings depends on you. There are lot of choices and since you wouldn’t be using the money in the near future, putting it in a regular savings account is not a good idea since the money placed in a savings account will not be able to keep up with the inflation rate. Try checking on mutual funds, UITF (banks), or even variable insurance.



  3. Carlos on May 12, 2013

    I agree with what Ron said.

    Place the money in a mtual fund or UITF. preferably an equity fund, if you’re ok with the risk.

    Education plans nowadays just give a return on your money, and won’t factor in what your actual tuition needs are. You’ll have greater returns (and more money for tuition) if you invest it yourself.



  4. Dexter on Jun 12, 2013

    First make an assessment on how much money do you need on a certain time that your child will gonna use the money, and from there you could be able to assess the amount of money that you need to save on a mutual fund.



  5. elleica on Sep 29, 2013

    Because of the bad reps of pre-need companies these days, I think it would be best to invest your money in mutual funds or the stock market (if you have the patience to study them and learn about them). They are long term investments which are good in ensuring that your money will earn higher.

    Keeping your money in ordinary savings account or even time deposit, especially if you won’t use it till after a long period of time, will be counter productive because the interest rates of savings account and time depositis these days cannot keep up with inflation.

    I have also come across variable insurance which insures you as you invest your money. If you tell them that you want to make sure your child gets an education fund during a certain year, then they can give you a proposal tailored to your needs. If you want, you can check out Axa Philippines. They have a plan right now that is specially built for education needs because in that plan they ask you to state a specific amount you want your child to have in, for example, his college years, then should anything happen to you before that period comes, they will give your child that stated amount for every year up until your child reaches college and finishes it.

    Hope this helps.

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