Should You Invest in Your Kids' Education? A Journey to Financial Stability with Your Family

Should You Invest in Your Kids' Education?

What investments do you have in portfolio? 

Stocks? Gold? Bonds?

Have you thought about investing in your kids' education? 

My mom did.

And now she's yielding and reaping the interests thereof. It's probably the single most important decision she has ever done in her life (next to marrying my dad) and proved her to be right. She has just made herself the best investor of all time. May I dare say that she's far more better than the world's greatest investor, Mr. Warren Buffet.

Let me tell you why before you start flipping out. 

Not that I'm saying that paying for my education has made us rich. She didn't send me to the best exclusive schools either (mainly because she couldn't afford to) but her efforts of sending me to school, no matter how difficult it must have been for her and despite how exhausting the efforts required of her, may I dare say that they are gradually being paid off.

I would never get tired telling people just how proud I am (and I'd bet all my life's savings that my mom is too, only 1000 times more proud) about me getting us a rent-to-own townhouse. Not that I've paid it all off in cash but I'm halfway there. I may not be literally halfway, but I'm on my way! 

The Children Is Our Future, If You Teach Them Well to the Right Path

Mom knew that "children is our future, teach them well and let them lead the way". Several years of her sacrifices are gradually being reciprocated as I take on the responsibility of being our family's provider (don't worry there's just two of us in the family) and trying to secure a much more comfortable lifestyle for both of us. 

Parents should therefore do all that they can to secure their future, their children's future by investing in their children's education. I've once read in a newspaper that it is ideal to invest the most money during the early years of your child's education than later. Yes, invest more while your child is in the nursery, kindergarten and grade school. Sounds too fancy, huh? Well think about how much a child develops and discovers his potential in his early years. As he successfully do so, the world will open its opportunities for him to the point that such opportunities will pay for his tuition in high school and college! You see, the earlier you invest, the higher the interest will it yield!

Diversify Your Investment Portfolio by Investing At Home

When I said invest, it doesn't necessarily mean just monetary investment but also, and most importantly, the time and love you could give to your children. Educate your children, nurture and help them get the best training from school and from home.

Don't focus too much on your jobs and accumulating wealth as you may lose them. Invest instead in a long term and high-interest yielding investment vehicle--your relationship with your family where no moth of the Earth could destroy nor men of this world could rob. 

Rear and nurture your kids with love and devotion and put in more effort and investment you can in them. You may lose your jobs, your portfolio may get weak during inflation and financial crisis but as you invest your time and resources wisely with your family, you can never lose them. As you invest with them, you are also investing into a much more secure and better community. Invest in your kids and their education (and regularly monitor them) and your investment will never go waste.

Not Relying Everything to Your Kids 

Now I don't wanna sound like most Filipinos that rely on their relatives and kids abroad just because parents have this sense of entitlement because  they've invested all their efforts on their kids education and feel that they shouldn't worry about their retirement. I am saying this because my maternal grandfather didn't give my mom the choice to study. He has his mindset that girls would eventually marry and that they don't need to spend money on their schooling because of such fate. It's totally unfair and I'm glad that my mom knew what she wants and eventually went to college with the help of some really kind old maids that manages the school she went to. It is very important for parents to provide for the education of their kids with the best that they can. However, they should not rely everything on their kids income and save some money for their retirement too. 

Why Me and My Mom Are a Perfect Combination

Mom has always been prudent, thrifty and practical--to the very sense of these words. She has always been so wise in spending her funds, knowing where to allocate each money available to what which is needed. She has little wants. She barely has them--especially the tangible or material ones. I once asked her whether she wants to buy fanciful dresses. She would just point her finger to Magarbo (an ukay ukay or hand-me-down clothes store) and would be pleased with her highbrow shopping skills.

I have learned to be thrifty and practical but not always wise. Having been deprived with a lot of luxurious things of this world, I have grown to develop a longing for these things and work hard to have them. 

Now, what makes me and my mom a perfect combination for wealth accumulation? I have the drive, she has the control. I have the skills, she has the Liahona (direction). I have been trained to get used to working hard, driven and passionate about earning, saving and investing. Mom knows how to take a few steps backward from the group of fanciful trees and tries to always get a better view of the forest. She helps me control my wants and determine my needs. She's like my hedge fund manager. A prolific one. 

However, mom lacks the investing initiative. She's risk averse and afraid to lose the principal while I am always thrilled at the interests I may yield from my little investments. Mom is a keeper while I am an investor. I am the earner while my mom is the saver. With our joint efforts we gradually secure our future, if not accumulate wealth, without relying too much on my current job.

What about you? Have you been wisely spending on your children's education? Are you trying to control your yearnings and try to increase your earnings? If not, it's not yet too late. Below are great resources for knowledge about investing, saving and other things that would help you refresh your memory or learn more about something you don't know.

Rich Free Resource of Knowledge and Investing Tips
I have recently been reading a lot of investment blogs and found a couple of which are very interesting and filled with bazillion and wealthy resource for investing. Also, I have found a free resource of refreshing our memory with lessons in college like mathematics, calculus, physics and other subjects which you might have forgotten by now. These are really interesting and very scintillating blogs, I must warn you, they are too addictive! 

1. Khan Academy - Bill Gates' Favorite Teacher
The Khan Academy is a not-for-profit 501(c)(3) with the mission of providing a world-class education to anyone, anywhere. Despite being the work of one man, Salman Khan, this 1600+ video library is the most-used educational video resource as measured by YouTube video views per day and unique users per month. We are complementing this ever-growing library with user-paced exercises--developed as an open source project--allowing the Khan Academy to become the free classroom for the World.

Below is a truly inspiring interview with the founder, Salman Khan about how he envisions a world with more intellectual people through free learning. Watch and be edified.

Jim Rogers, a native of Demopolis, Alabama, is an author, financial commentator and successful international investor. He has been frequently featured in Time, The Washington Post, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times, and most publications dealing with the economy or finance. 

I gotta save the best for last. Blasting with tons of great ideas and advices on investing, Lloyd is an investing genius!

Being a collection of thoughts, observations, comments, opinions and views on investing--especially for the long term. Disclaimer: This blog is not intended as professional advice. Please seek your own professional advisor who can properly review your particular circumstances. The author disclaims any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.

Enjoy your journey to a financial independence!

Building genuine wealth is as much about the builder as it is about the built. - Robert Kiyosaki

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mashary rashed said...

" Not Relying Everything to Your Kids "
that's great

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Nathanael Hernandez said...

I just can't stop reading your articles! You put so much thought into the things that you are saying! I'm pretty sure that you are really smart. Keep up the great work. This world needs a lot more people like you.