How Much Do You Need to Save for Your Child’s College Tuition Fees
When you're caring for a baby, you're busy with feeding schedules, diaper changes, and sleep (yours and your little one's). You're probably not thinking about college tuition fees yet. But you and your partner may want to discuss it sooner rather than later.
You get three clear advantages when you start planning for education costs now. First, you can save smaller amounts over a longer period. Second, your money has more time to grow. Third, early financial planning helps you avoid rushing or borrowing large sums later.
To plan with more confidence (and less stress!), you first need a clear picture of how much a college education costs today—and in the future.
College Tuition Fees in the Philippines
College tuition fees in the Philippines vary widely depending on the school and the course your child chooses. But one thing's for sure: every year, private school costs just keep rising, especially with inflation making it harder to get the most out of your money.
To give you an idea, below are some of the published and estimated rates of tuition fees for an average of 20 units each semester for schools in Metro Manila.
Private universities
- Ateneo De Manila University: ₱117,000
- De La Salle University: ₱83,500
- University of Santo Tomas: ₱70,000 to ₱80,000
- University of the East: ₱50,000
State universities
Private colleges
- De La Salle-College of Saint Benilde: ₱100,545
- CIIT College of Arts and Technology: ₱55,000
Remember, these figures are subject to change without notice. Some amounts may not include miscellaneous fees such as registration, laboratory, and library usage costs.
Degrees in fields like medicine, engineering, and technology typically cost more than those in liberal arts programs. However, small colleges that offer specialized courses like degrees in Multimedia Arts or Hotel and Restaurant Management may charge tuition fees similar (or even higher) to those of private universities.
Aside from tuition fees, don't forget expenses, such as books, uniforms, transportation, food, and, sometimes, housing.
How to Calculate the Future Cost of College Tuition Fees
Now that you have an idea of tuition fees, it's time to crunch numbers. Yes, it doesn't sound fun,but doing them yourself makes it much easier to plan your monthly savings. Here are a few simple steps to get you started.
Step 1: Target the college tuition fee you're comfortable paying.
For calculation purposes, let's say your target tuition fee is ₱100,000 per year.
Step 2: Estimate the annual tuition increase.
College tuition in general goes up every year. A 5% increase is a safe bet, but parents who want to be on the safe side plan for a 7% rise each year. (In 2025, the Commission on Higher Education or CHED approved a 6.6% increase in tuition in 18 private colleges and universities in Western Visayas).
Step 3: Count the years until college.
For example, your child begins college 18 years from now.
Step 4: Estimate future tuition fees.
You can estimate future tuition fees using this basic formula:
Future tuition fee = Target tuition fee × (1 + annual increase rate)ⁿ
(Write the annual increase rate as a decimal. "n" is the number of years until college.)
Here's a sample computation*:
₱240,600 a year = ₱100,000 × (1 + .05)¹⁸
This means a tuition fee that costs ₱100,000 today may cost around ₱240,600 per year when your child enters college.
*Keep in mind that (1 + .05)¹⁸ means multiply the sum (1.05) by itself 18 times, not 1.05 × 18. On the calculator, enter 1.05, tap xʸ, and enter 18, and you'll get 2.406
Step 5: Break it down into monthly savings.
College typically takes four years to complete. So, given the sample estimate above, total tuition fees can amount to ₱962,400. Now, divide this total amount by the number of years you have to save.
₱962,400 ÷ 18 years ÷ 12 months
With the cost of living these days, you're not alone if that number gave you pause and made you feel a little overwhelmed. But these numbers are estimates. What's crucial is starting a savings habit early and consistently because time allows even modest savings to grow.
How to Start a College Education Fund
You don't have to aim to save ₱4,445.55 a month right away. Start small and gradually increase your savings as your income improves.
Some parents begin with a savings account with higher-than-typical interest rates dedicated only to education. This is simple and low risk, but growth may be slow.
Others explore education plans or investment-linked products that aim to grow funds over time. These options may offer higher returns but also come with risks. Make sure you understand how each option works before committing.
Whichever route you choose, it is best to keep the education fund separate from daily expenses. This makes it easier to track progress and avoid using the money for other needs.
Find saving tips in 15 Tips on How to Save Money as a Family.
Instill a Healthy Savings Mindset
Preparing for private school looks different at each stage of early childhood, but the goal stays the same. You want to make sure your child grows up understanding that education takes planning over time.
Of course, if you have a baby, the focus is on your saving habits, which can begin to shape how your child sees education. Saving regularly sends a clear message that learning is a long-term priority and something your family prepares for early.
If you have a toddler
Toddlers pick up a lot from watching what happens around them, even if they don't really get money yet. When saving for education becomes a regular part of family life, kids start to understand that goals take time and patience.
These early lessons help kids learn responsibility and follow through, skills they can use in school and with planning for the future. Over time, it makes it easier for them to grasp why saving for education is essential.
If you have a preschooler
The preschool stage is a great time to casually chat about saving up for school in easy terms. When they hear that money is being set aside for their education, they start to get that learning requires planning and it's a family effort.
When you encourage your child's interests and discuss school as a way to pursue or master those interests, they'll see education as a long-term commitment.
College tuition fees can feel intimidating, but early and steady preparation makes them easier to handle. Take it one step at a time, Mom and Dad!
Wondering how other parents are saving? Start the conversation at the ParenTeam Moms and Dads Facebook Group!
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