Friday, February 28, 2014

Family Finance: How We Can Allot Money for our Kids' Tuition?

For most parents, a good education for their child is a non-negotiable--no matter what the cost. We are willing to bend over backwards if only to make sure that our child gets a better, more secure future. Here are some ways to save money for tuition long before enrollment day arrives:

Set the money aside. Allot a specific and manageable amount of money per month for next year's tuition. You may create a new bank account for this and directly deposit your "payments" every payday to ensure that the money doesn't get whittled away on daily expenses.

Cut the incidentals. Jot down your spending for a couple of months and slash the payments you're making for unnecessary or frivolous items. Cancel your subscription to a magazine you rarely read. Dine out only once a week. And stop giving in to your child's whims whenever she asks to buy a toy. 

Reduce household expenses. Smart changes in home management can significantly lower your monthly bills. Save thousands of pesos by driving your child to school instead of hiring a driver. Cut your Meralco bill in half by sleeping in one air conditioned bedroom for the family. 

Use your credit card wisely. Purchase items on your credit card only when you can pay the entire balance in full when the bill arrives. Otherwise, you will be spending your hard earned cash on high interest payments and you will be setting yourself up for years of credit card debt. 

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