In Search for Best Educational Plan / Planning – 2 Mother’s Dillema

After writing ‘Educational Plan Options in the Philippines – Mother’s Dillema Part1 and Part 2, we’ve received some emails asking for educational plan advice given their stories and personal  details.

Searching for the Best Educational Plan

So far, we’ve already answered one – Educational Plan Approach for 2 Kids of Vince Diesel (not his real name of course). And so far, looks like he’s happy with the fund play I made for him coz he personally called me and wanting to start his plan immediately. Happy Investing Vince Diesel. Stay focused with your objectives. I’m sure you’ll succeed with God’s help as always.

Today, we’ll try to answer the remaining 2 emails.

  • First is the case of Ging-ging (not her real name), 39 years old with 2 kids – age 5 and 3. She asks, what if she can only save P3,000 a month for both kids.
  • And the 2nd one, the case of Ana who has also 2 kids, aged 7 and 4. Maximum savings is only P1,500 per month for both kids.

Ging-ging wrote:

I read your article about the cost of college education and am interested in knowing what can be in store for me for my two kids. I have a 5 y/o child about to enter kinder and another who will turn 3 in july.

Hi Ging-ging, I’ll go straight to the point for your case. To tell you frankly, P3k a month for 2 kids may not have too many options to choose from. And hopefully, you already have some insurance at hand so it will make our challenge a little bit easier to handle. With that amount, it will only cover 1 kid if we get any of Sun Maxilink Prime – Insurance with Investment Plan. So this will be a little manual investing, please bear with me.

Assuming that you don’t have one yet. My profession dictates me that I should always recommend to get insured first before getting a pure investment plan. With that in mind, I’d recommend the following:

  • Get a Term Insurance Plan – P1Million coverage – it will cost you P6,130 a year or P1,685 if paid on a quarterly basis. Roughly, that’s P562 per month. This will serve as your safety net. In any case something happens to you  (death), P1,000,000 will be  instantly available to your kids.
  • Invest the difference in Mutual funds. Since they got different age, you have to divide it this way. For your 5 year old, you need to invest P1,375.00 monthly (religiously). And for your 3 year old, you should invest P1,060.00 monthly (very strictly).
    That way, by the time they both reach the age of 17 (time to enter college), both of them will have an Educational Fund ranging from P300k – P390k (assuming average fund performance of 8%-10% ). 

    Let me remind you though. This is not an easy thing to do – keeping your insurance intact and religiously investing every month or every payday. But if you’re really focused to succeed, then this will come into a reality.

  • Another option is getting a Sun Flexilink 1Million Coverage (also an Insurance with Investment). At 36,000 a year, fund value at the end of age 12 (the time your panganay enters college) is at  P500k-P575k. At the end of age 14, fund value is at P650k-P750k.But of course, by then, your first born would have started college already. So you have to play a little more with numbers when that time comes. The only advantage of this one is it’s Forced Savings. Meaning, a billing will always remind you that you have to save.Disadvantage is that, the fund value mentioned is based on annual payment mode. Quarterly payment may not be able to attain the said fund value.Hopefully you won’t be confined with 3k monthly savings.

    Always in the lookout for new ways to earn more. And as you earn more, increase the amount that you allocate for your children’s educational fund. If you’ll have that habit, I’m sure, you’ll have more fund when the they start entering college.


For the case of Ana, she wrote:

You may find it hard to do a computation or suggest anything because of my status preferences though I will honestly tell you that I am a single mother of two boys and thinking and planning for my sons’ future / education is truly a dilemma especially for me who is raising kids alone.

I am desperate but at the same time still hoping to get some help and advices. I was surfing the net and I was led to your link/blog. I think the Heavenly Father is directing me to you. Any informations and suggestions is considered very helpful. Anyway I am from Cebu City.Thank you so much.

Ana has 2 kids, aged 7 and 4. She’s 31 years old. And according to her email, her target monthly contribution is only from P1k – P1.5k. Whew! I’m actually running out of letters to write here.

Hi Ana, thanks for visiting and reading my blog. I actually feel for you and I could only imagine how you’ve been thinking about their college education.

Literally tightening your Money Belt

Honestly, P1.5k a month for 2 kids college education, aged 7 and 4 is really very hard to imagine. Let’s assume that you’re already insured. Say your company gives you 1 Million insurance coverage so that we’ll just play with investing your P1.5k every month.

  • Divide your P1.5k a month this way – P900 for your 7 year old and P600 for your 4 year old. Invest it every month – religiously, ‘bawal pumalya’. That way, when they both turn 17, both of them will have around P160k – P190k each (assuming an average of 8%-10% fund performance).
  • The challenge will then be a little difficult if in case you have no safety net (insurance) at hand yet. Given that scenario, I’d suggest getting Sun Flexilink with P500k coverage. That way, if in case something happens to you (death), P500k is instantly available and can fund their college education.At P1,500.00 a month, fund value at the end of age 10 is at P195k – P217k. At the end of age 13, it will be around P298k – P341k (assuming an average fund performance of 8%-10%). And again also, you have to play a little more with numbers when that time comes coz they need to share with that fund value.On the advantage side, again, this one is Forced Savings, so it is easy to achieve. Rather than manually saving and investing on a monthly basis.

And if I may add Ana. Knowing that you can only save P1,000-P1,500 a month, maybe it’s due time that you look for additional income. Something like cellphone loading business. Or doing some buy and sell stuff. Things that you can do while employed. That way, you wouldn’t have to be limited to that amount of savings. Again, as your income increases, I hope that your savings / amount invested increases and not your expenses. Doing so will make you achieve your financial goals easily.

Whew! That was a handful. I thought it will only take just a few sentences to answer. It did only few, but not sentences but paragraphs.

So for Ging-ging and Ana, I hope that this will give you an oversight of the great challenge you have ahead of you.

Oh, and one more thing. If in case you want to follow what I suggested here, you have to start ASAP. When I say ASAP, if you can do it tomorrow, do it. If not, at least on the coming payday.

Time is your secret ally. Time is truly PRECIOUS.


P.S. I think I’ll write about Sun Flexilink in my next post. This will surely raise questions like ‘What is Sun Flexilink?’ How it differs with Sun Maxilink Prime and Sun Maxibright as they seem all to be Insurance with Investments?

All of these will be answered in that post. Watch out for it. Subscribe to our mailing list below and Like our Facebook Page to be always updated.

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Garry Zaldy de Castro is an advocate, Financial Advisor, Certified Investment Solicitor (Mutual Fund Representative), blogger, IT practitioner, husband to Aileen and a dad to Jacob and JohnD. He started Financial Planning Philippines in 2008 just to share his financial learning to friends, relatives and anyone who wishes to be financially independent.


  1. This is very informative. However, I have doubts as to where should i invest for my kids’ education. Which pre-need company is best? Thank you.

    1. Hi Sella, you may want to check the best companies of 2010 here

      But if you’ll allow me to be a little biased, go with Sun Life Financials. 😀 

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