Set it up early…ensuring your child’s future

“Education is the most powerful weapon which you can use to change the world.”

~Nelson Mandela

One thing I am truly proud of as a Filipino is how we value education and parents go through great lengths to have their children finish a degree as we believe that it increases the probability of our children having a good future.

My story is no different. The conversation I had with my father that fateful night when I was in second year high school continues to be vivid in my mind until now. He came home and saw me crying because I was not yet enrolled as he was still sourcing the money. He sat me down and told me that no matter what happens, I will be enrolled and he promised that even if it takes selling all that he has, he will make sure he gets me through school. He passed away when I was in my junior year in College and indeed, he left provisions so I could finish my degree. His life insurance policy made sure I continue my studies despite the unstable income of my mother from her “sari-sari” store (a sari-sari store is a small neighbourhood store that sells common sundry items; sari-sari is a Filipino word for variety).

Thank you, Papang for fulfilling your promise.

When it was my turn to have a child of my own, setting up an education fund for our daughter was one of the first decisions we made as parents. Both my husband and I got separate policies three months apart. Last year, after 15 years, our education plans matured so we now have her college fund ready (she will be entering college in less than 2 years). Since both my husband and I are still earning, we have the choice to re-invest a portion of it which she can use later after graduation or if we need it for some education requirements, we can do that too. Our decision to set it up early gave us the options now plus the peace of mind that no matter what happens to our ability to earn, she can finish her chosen degree just like what my father did to me.

Our bundle of joy at about the time we started her education fund

The key is to start early. As soon as your bundle of joy is born (or better still, before birth), start setting up his/her education fund because the more years you have to grow the fund, the less amount you need to start it.

Invest it in a fund that is not easy to access. Simply putting it in a savings account does not only put your money to sleep (as it hardly earns anything) but it also gives you easy access to it so the risk of diverting it to other things is high.

Make it grow. If you start it early, like ten years or more before you actually need it, you can be more aggressive in the funds you invest in. Aggressive funds like equity give more upside but may also be more volatile. However, the longer time horizon you have mitigates the risks. Do frequent top-ups so you catch the “downs” of the market and get higher returns. Don’t just invest one time. Invest frequently.

Having more children requires an even more deliberate approach to education funding especially that we have other needs to prepare for like our retirement. Considering the ever-increasing cost of education, it’s either you will compromise the comforts of your daily living now by cutting your expenses here and there or you compromise your ability to save for a comfortable retirement. Both require long-term planning.

So while you still can, start it now. Every delay has a price to pay.

For related blogs, please read the links below:

Easy breezy Baguio

This City of Pines is a place of retreat from the hustle-bustle of the busy city and is simply the kind of respite we crave from time to time. With an estimated 2.5 million Benguet pine trees surrounding the city and the uphill and downhill terrain and panoramic view of houses on the hills as well as foggy mountains, Baguio is definitely a wonderful escape I consider one of my happy places.

Apartments and staycation places abound with price range to choose from and for people like me who travel to places to relax and be refreshed there are lots of choices. I go for homey apartments with a view of either the pine trees or the mountains in quiet neighbourhoods and our recent trip is certainly one choice I am happy to have made especially with its tasteful interiors and thoughtful amenities and very attentive caretakers . http://freds.com.ph/baguio/page/gallery

Coffee Shops and cafes are staples in our agenda and we search for nice ones with good reviews. For our family trip this time, we were quite satisfied with our choices and the cold December weather added to the thrill.

A visit to Camp John Hay is another must. With a large concentration of pine trees in the area, one can easily fall in love with the place. Early this year (before the stricter travel measures due to the pandemic was imposed), we had the chance to participate in the Baguio Marathon which started and ended in Camp John Hay. I did half marathon and the downhill and uphill route was certainly not for the faint of heart. The route went all the way to the Lion’s Head along Kennon Road and just when the finish line is already in sight, you have to run another kilometre uphill with your legs almost giving up.

Another must-visit is the Bencab Museum. The display of contemporary artworks in this museum is wide and the museum itself with its modern and clean design is lovely. National Artist Benedicto Reyes Cabrera’s (Bencab) works are beautiful. He is indeed one source of Filipino pride. Read more about his works and profile: http://www.bencabmuseum.org/national-artist/

Due to its idyllic weather, fruits are abundant and the Baguio market is a feast of various produce from the province. For coffee drinkers, Benguet coffee is synonymous to great coffee. In fact, an Atok-grown coffee emerged as the grand champion in the 3rd Philippine Coffee Competition held in March 2018. Oliver Oliem’s Arabica coffee entry won 1st place while 2 other Benguet Arabica coffee entries also won 3rd and 5th place among 700 entries. Atok coffee was described as a blend with flavour characteristics of apricot, lemongrass, pomelo, oolong Tea and the aroma of a rose. The National Barista Champion 2020 Adrian Vocalan also used coffee from Itogon, Benguet. No wonder there was a queue in the Fresh Roast shop at the Baguio marketplace where you can get Benguet premium and flavoured coffees. Read more: https://pia.gov.ph/features/articles/1019148

For sure, Baguio will always be one of my favourite places in the country and I am just so happy to note of Baguio’s Re-greening Masterplan which includes a tree-cutting moratorium. It is my hope that House Bill No. 7090 seeking for 10-year moratorium on tree cutting in the city (by Baguio Congressman Mark Go) last July 13, 2020 will be passed to reinforce the 5-year tree-cutting moratorium imposed in residential, business and public areas in the city.

With the newly opened NLEX-SLEX Connector which is expected to cut down travel time from Metro Manila and is set to be fully operational by January 14, 2020, Baguio will certainly be more attractive to people like me who just want to be away and experience easy breezy Baguio.

Life begins at 40…it’s time to look back and look forward

We oftentimes say, life begins at 40 and for some, it means it’s time to get serious with life but do we really start when we are already halfway though life?

“The day you plant the seed, is not the day you eat the fruit.”

Dr. Sanjay Tolani

With life expectancy of 80 years, 40 means we only have 20 more years or 7,300 days to make a difference in either being financially independent in our old age or being a burden to our children, who, by then, would have their own responsibilities to a carry.

Life begins at 40 should mean, we have done a pretty good job at preparing for the best phase in our lives by the time we are halfway through life. Then and only then, can we say, that indeed, life begins at 40.

Look back…have you done what you should have done? Your answer must give you the urgency to either do more or continue what you have started. As Tennessee Williams said, You can be young without money, but you can’t be old without it.

For more appreciation of this concept, watch Dr. Sanjay Tolani’s you tube video on 28,000. It will make you do a reality check just as it did to me. https://youtu.be/hV_rDPEpLEc