According to Parenting Gold School, traditional parenting has always been about raising a child to become a functional adult who can contribute positively to their family and ultimately, the society. But how do we prepare our kids to be successful someday? Here’s some of our tips: 

1.       Meet the basic needs (food, shelter, bills, etc.)

Every parent should be able to provide these. Nutrition, education, proper parenting are the top of the list.

2.       Child’s education

For parents, the guilt over failing to support their child’s needs is one of the worst feelings in the world. Nobody wants to be that parent who can’t afford to send their child to a good school.Education in the Philippines will become more expensive in the future because of inflation. So while you’re still young, building a family, and earning a stable income, start preparing financially for your child’s education.

Allocate a fixed amount or percentage of your monthly income for the tuition fund. It doesn’t matter if the amount varies—at least you have some money set aside regularly just for that purpose.
Here are some actionable tips to save up for your child’s tuition:

  • Follow the 80-20 savings formula.
  • Add more money to your child’s tuition fund each time you receive a bonus.
  • Find additional income sources. For example, you can start a small business even with a low capital.
  • Involve your child, like putting cash gifts from godparents and relatives into his or her own tuition fund. This will train your kid on financial responsibility at an early age.

If you’ve got little time to save, like when you’ll enroll your toddler in preschool soon, consider getting a personal loan for education. This will help you meet your urgent need to pay for tuition in any school you prefer, while making repayments easy on your budget with its fixed loan terms and fixed, low interest rate.

3.       Enough emergency funds

Parents must also remember to save for emergency fund. You can use it in unexpected occurrences such as job loss, medical treatments, home repairs, etc. Having an emergency fund is what every responsible parent cares about. Emergency funds can help you survive from unexpected incidents!

4.       Insurance

Insurance provides coverage for a defined group of people, such as members of professional associations or employees; coverage includes life insurance, health insurance, and/or other types of personal insurance. 

  • Alert: Provides coverage on students and other individuals within a school setting.  
  • Group Credit Life Insurance: Provides life insurance coverage for debtors with outstanding loans with creditors, paying up to the extent of outstanding loan balance.  
  • Group Critical Illness: Provides lump-sum cash benefits upon diagnosis of any one of 35 defined critical illnesses. 
  • Group Life Insurance: Provides life insurance coverage for qualified individuals belonging to a company or organization.  
  • Group Personal Accident: Provides personal accident coverage for qualified individuals belonging to a company or organization.

5.       Retirement

Many retirees are enjoying a secure retirement, but many pre-retirees envision that the “dream retirement” is becoming more elusive.

Although retirement readiness depends on each person’s financial situation, many financial experts believe that retirees need between two-thirds and three-quarters of their pre-retirement income to maintain the same standard of living in retirement as they enjoyed when they were working.

Financial readiness is only one part of being ready for retirement. Being prepared mentally, socially, emotionally and physically are also important; many experts recommend taking part in activities that will satisfy these aspects of your life. Knowing where you will live, when you will retire and whether you will go back to work or school are all important aspects of financial readiness.