MANILA, Philippines — There really are no words to describe the feeling and overall experience I had for being able to hold all of my six children in my arms right after they were each born. And as they grew up, I get thrilled each time they say their first “I love you, Daddy.”
Then reality hits. The kids grew quickly, and their needs grew just as fast. I realized, this is when the babyproofing of life begins – when you just want to make sure that you’ve cleared the way toward your children’s future.
Because at some point – after tussling with diapers, food, clothes, hypo-allergenic products, intellectually stimulating toys, safe play areas, and the like – there is the matter of education from pre-school, then elementary, then high school, then college! I should know, as my kids are across all these education stages right now.
I write all this primarily from the vantage point of a dad who wants to provide well for his family. I have not factored-in all the emotional time and energy that is needed, which I am fortunate to have my wife carry for us. Don’t get me wrong, I also provide emotional support for our kids as this is clearly important, but as the primary breadwinner, I do not have as much time with the kids as my wife does.
Why am I highlighting these realities and the needs that come with a newborn baby? Because if we aren’t prepared, these can quickly snowball to a point where we find ourselves scratching our heads and scrambling for ways to make ends meet. Thus, it is important to ask ourselves as soon as the baby is born (and maybe even while in the womb): What is the most important thing I want them to learn? How will they get there? Why is this the most important thing?
We may want them to learn how to be the best Filipino citizen, for example. One that contributes more than consumes. One that will make a positive difference for this country.
Following this example of “how to be the best Filipino citizen," we now focus on major steps across broad age groups on how to get there:
0-2 years old: Experiences must highlight positive Filipino values / culture through baby music, clothes, shows, toys, food, and stories we start telling them
3-5 years old: Experiences must highlight positive Filipino values / culture through the same things but now add-on travel and pre-school education
6-12 years old: Experiences must highlight positive Filipino values / culture through the same past things with the addition of friends and the upgrade to elementary education
13-17 years old: Experiences must highlight positive Filipino values / culture through the same past things with the addition of “real-world experience” (like internships or small biz initiatives etc.) and the upgrade to high school education
18 years up: Add the upgrade to college education
As you map this out, remember that the steps help you prepare the parenting considerations as well as the practical financial aspects (i.e. how much will I need to prepare to achieve this). The parenting part is more complex as this will entail an honest look at yourself, your skills and experiences, and the help and resources you may need from others like family, relatives, school support, or even local church / community support.
The financial part is a bit more controllable as you can follow this step-by-step template:
- Identify the specific goal you want to achieve. I suggest to start with the bigger financial goals from the time the child gets pre-school education.
- Determine how much time you will need to raise money for that goal. I suggest to use years and months.
- Calculate how much that goal will cost. When you determine the cost of this goal, factor-in inflation since the cost will change between now and when you will actually need it.
- Determine how much money you can set aside right now to achieve that goal. Consider whether you can set aside one time, over several months, or over several periods. See how much money you can keep putting behind that goal until it is due.
- Determine the percentage your money needs to grow in order to achieve your goal. You might want to consider the help of an app or a financial planner. Once you have this number, use this as guide for the final step.
- Determine what investments you need that can give you the percentage you determined in step 5. Once again, you may need a financial planner to determine what investment makes sense. If you want to look for investments on your own, ensure that (a) you understand them enough to be able to explain to a nine-year old; and (b) you trust the company behind the investment. Always INVESTIGATE before you INVEST.
This is by no means exhaustive, but it should get you started quite well. I suggest to check out FWD Insurance as a financial source specifically for babyproofing: from insuring babies as early as 15 days old to covering them continuously in case the policy owner gets incapacitated for work or die (God-forbid!).
Take some time to talk this through with your spouse. Once this is clear, “babyproofing” and even “future-proofing” your children will become a less stressful and much more fulfilling and rewarding journey. For me and my family, our WHY is to love and serve God with all that we’ve got. This is the driving force we parents pass on to our kids.
So now it’s your turn. Babyproof your future. Start now.
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Edric Mendoza is the former anchor of ANC's "On the Money." As one of ANC's financial experts, Edric has given advice on topics on how Filipinos could secure their future. He has been also teaching financial literacy in his social media accounts.