Image from US News University DirectoryIn the Philippines, education is of top importance. In fact, it is even considered a status symbol in some parts of the country. Thus, finishing college is an honor, even more so if you finished college from a prestigious state university.
Because of the economic state of a good majority of Filipinos, the Marcos government added a program to the existing list of state-run high schools and universities: Philippine Science High School boasts of an education program that's tailored to the best minds of the country.
One of the perks of being a Philippine Science High School, or, as affectionately called, Pisay scholar, is the stipend that they receive. On a monthly basis, an allowance is dispensed to the fortunate scholar. In my time, the stipend ranged from Php 500 for "Special Scholars," or the scholars who were wealthy, Php 1200 for the "Partial 2 Scholars," or the middle class, Php 1500 for the "Partial 1 Scholars," and Php 2,000 for the "Full Scholars." My grandmother remarked, when I hit college, that had I saved my stipend, I would have had Php 200,000 by the time I graduated. Well, that figure is inaccurate. I was a Partial 2 Scholar, so I received Php 1,200 a month. Multiply that by 10 months of school and by 4 years of high school, I would have had Php 48,000 by the time I graduated from high school, if I didn't spend a single cent of that money.
Today, Philippine Science High School scholars enjoy stipends of Php 500, Php 1500, Php 2100 and Php 3000, respectively. Here are the breakdowns for parents who may be able to guide their children to save, if not invest their stipend:
Even interest-free savings alone will allow a Pisay scholar a good nest egg by the time he graduates.
How much more if he invests it in a stable financial vehicle with great interest rates?
Time Deposit Rates (Based on Banco De Oro's Rates as of 2011):
More than time deposit, if the Pisay scholar and his parents were risk-takers, they could actually make use of other financial vehicles that may be able to give better returns, like Philam Life’s investment portfolios.
The Philam Life mutual funds have very affordable minimum investment levels, at Php 5,000 for the Philam Bond Fund and the GSIS Mutual Fund, or Php 10,000 for the Philam Life Strategic Growth Fund or Philam Fund, Inc. Should you want to invest more, you can add to your funds for Php 1,000 each time.
These are the growth rates of the most affordable mutual funds that Philam Life offers:
Here’s how a Pisay Graduate’s stipend funds will look like, after a year of investment:
Take note that mutual funds like Philam Life are variable funds. Meaning, if the stock market is up that year, the growth rates will be great. If the stock market dips, or, heaven forbid, crashes, then the documented value of your money would also dip. Take note that the stock market recovers over time, so once you invest, keep it there, until you see that the value of your account is what you want, and you may withdraw that and use it, re-invest, or do whatever else you want with it.
Remember that the higher the growth rate, the bigger risk it entails. So if you’re the risk-taker type, go ahead and invest aggressively at the higher growth rate funds. If you fear the loss of your stipend, then the Philam Bond Fund or BDO’s Time Deposit accounts may be better options for you.
Here’s what your stipend would look like over time, if you put it in a BDO Time Deposit account, with their 2011 Interest rates.
The values are as-is. Meaning, we’re supposing that you won’t add to your account. See how it grows over time? That’s how much you could add to your retirement fund, if you were a Pisay scholar.
When I was still in high school, I was like any other teen. I loved movies, music and squandered my money going to movies and buying cassette tapes that I later gave away. Today, I deeply regret not being more prudent, and I wish I knew then what I knew now. Had I known all that information, I would have had a jump start on my retirement fund today.
But, it’s not too late for the current Pisay scholars. Even the kids from regular schools. If you save Php 20 a day for 10 months (school season), given that there are 25 school days in a month (or those weekends when you need to make projects or go to NSTP/CWTS/LTS), you’ll be able to save Php 5,000 a year. Php 5,000 is the minimum of the Philam Bond Fund or the GSIS Mutual Fund. In 4 years’ time, you could save Php 20,000 and you could then start your retirement fund from that. Check the values under the Special Scholar bracket and you’ll see how your money should look like, over time.
Granted, there are pressing needs and projects to pay for. But I really believe that a prudent teen can and will be able to save a hefty sum if he is determined. In fact, for only Php 20.00 a day, a teen can start a good fund by the year’s end already.
As they say, when it comes to compound interest, time is your ally. The sooner you start, the better it is for you. In fact, most financial gurus say that the guy who starts earlier will trump up the funds of the guy who starts later, even if he invests aggressively.
So to Pisay Scholars: make the most out of your allowance and stipends. It’s never too early to start building your retirement fund. Don’t wait until the clock starts ticking and old age is looming. Here’s one for prudence.
-----
Credits to:
Arthess Castor, former Registrar/current Supply Officer, PSHS WVC
Marjorie Halique, Professor, UPV-Miag-ao Computer Science Dept.
Lionel Miroy, former PSHS Scholar and CPU Psych student
Because of the economic state of a good majority of Filipinos, the Marcos government added a program to the existing list of state-run high schools and universities: Philippine Science High School boasts of an education program that's tailored to the best minds of the country.
One of the perks of being a Philippine Science High School, or, as affectionately called, Pisay scholar, is the stipend that they receive. On a monthly basis, an allowance is dispensed to the fortunate scholar. In my time, the stipend ranged from Php 500 for "Special Scholars," or the scholars who were wealthy, Php 1200 for the "Partial 2 Scholars," or the middle class, Php 1500 for the "Partial 1 Scholars," and Php 2,000 for the "Full Scholars." My grandmother remarked, when I hit college, that had I saved my stipend, I would have had Php 200,000 by the time I graduated. Well, that figure is inaccurate. I was a Partial 2 Scholar, so I received Php 1,200 a month. Multiply that by 10 months of school and by 4 years of high school, I would have had Php 48,000 by the time I graduated from high school, if I didn't spend a single cent of that money.
Today, Philippine Science High School scholars enjoy stipends of Php 500, Php 1500, Php 2100 and Php 3000, respectively. Here are the breakdowns for parents who may be able to guide their children to save, if not invest their stipend:
| Special Scholars: Php 500 a month x 10 months a year x 4 years Total Savings: Php 20,000 | Partial 1 Scholars: Php 1500 a month x 10 months a year x 4 years Total Savings: Php 60,000 | Partial 2 Scholars: Php 2100 a month x 10 months a year x 4 years Total Savings: Php 84,000 | Full Scholars: Php 3000 a month x 10 months a year x 4 years Total Savings: Php 120,000 |
Even interest-free savings alone will allow a Pisay scholar a good nest egg by the time he graduates.
How much more if he invests it in a stable financial vehicle with great interest rates?
Time Deposit Rates (Based on Banco De Oro's Rates as of 2011):
| Term: 30 Days | 60 Days | 90 Days | 180 Days | 360 Days | |
| Php 1,000 to below Php 10,000: | 1.25% | 1.375% | 1.625% | 1.875% | 1.875% |
| Php 10,000 to 50,000 | 1.375% | 1.625% | 1.75% | 2.00% | 2.00% |
| Php 50,000 to below Php 100,000 | 1.625% | 1.875% | 1.875% | 2.125% | 2.125% |
| Php 100,000 to Php 200,000 | 1.75% | 1.875% | 2.00% | 2.25% | 2.25% |
More than time deposit, if the Pisay scholar and his parents were risk-takers, they could actually make use of other financial vehicles that may be able to give better returns, like Philam Life’s investment portfolios.
The Philam Life mutual funds have very affordable minimum investment levels, at Php 5,000 for the Philam Bond Fund and the GSIS Mutual Fund, or Php 10,000 for the Philam Life Strategic Growth Fund or Philam Fund, Inc. Should you want to invest more, you can add to your funds for Php 1,000 each time.
These are the growth rates of the most affordable mutual funds that Philam Life offers:
| Philam Life Strategic Growth Fund | GSIS Mutual Fund | Philam Fund, Inc. | Philam Bond Fund |
| 47.39% | 37.02% | 36.90% | 5.53% |
| Minimum Initial Investment: | |||
| Php 10,000 | Php 5,000 | Php 10,000 | Php 5,000 |
Here’s how a Pisay Graduate’s stipend funds will look like, after a year of investment:
| 4 Year Stipend Savings | BDO Time Deposit, 360 Days | Philam Life Strategic Growth Fund | GSIS Mutual Fund | Philam Fund, Inc. | Philam Bond Fund | |
| Special Scholar | 20,000 | 20,400 | 29,478 | 27,404 | 27,380 | 21,106 |
| Partial 1 Scholar | 60,000 | 61,275 | 88,434 | 82,212 | 82,140 | 63,318 |
| Partial 2 Scholar | 84,000 | 85,785 | 123,807.60 | 115,096.80 | 114,996 | 88,645.20 |
| Full Scholar | 120,000 | 122,700 | 176,868 | 164,424 | 164,280 | 126,636 |
Take note that mutual funds like Philam Life are variable funds. Meaning, if the stock market is up that year, the growth rates will be great. If the stock market dips, or, heaven forbid, crashes, then the documented value of your money would also dip. Take note that the stock market recovers over time, so once you invest, keep it there, until you see that the value of your account is what you want, and you may withdraw that and use it, re-invest, or do whatever else you want with it.
Remember that the higher the growth rate, the bigger risk it entails. So if you’re the risk-taker type, go ahead and invest aggressively at the higher growth rate funds. If you fear the loss of your stipend, then the Philam Bond Fund or BDO’s Time Deposit accounts may be better options for you.
Here’s what your stipend would look like over time, if you put it in a BDO Time Deposit account, with their 2011 Interest rates.
| 4 Year Stipend Savings | BDO Time Deposit, 360 Days | After 2 Years | After 5 Years | After 10 Years | After 20 Years | After 50 Years | |
| Special Scholar | 20,000 | 20,400 | 20,808 | 22,082 | 24,380 | 29,719 | 53,832 |
| Partial 1 Scholar | 60,000 | 61,275 | 62,577 | 66,652 | 74,041 | 91,368 | 171,694 |
| Partial 2 Scholar | 84,000 | 85,785 | 87,608 | 93,312 | 103,657 | 127,915 | 240,371 |
| Full Scholar | 120,000 | 122,700 | 125,461 | 134,121 | 149,904 | 187,261 | 365,046 |
The values are as-is. Meaning, we’re supposing that you won’t add to your account. See how it grows over time? That’s how much you could add to your retirement fund, if you were a Pisay scholar.
When I was still in high school, I was like any other teen. I loved movies, music and squandered my money going to movies and buying cassette tapes that I later gave away. Today, I deeply regret not being more prudent, and I wish I knew then what I knew now. Had I known all that information, I would have had a jump start on my retirement fund today.
But, it’s not too late for the current Pisay scholars. Even the kids from regular schools. If you save Php 20 a day for 10 months (school season), given that there are 25 school days in a month (or those weekends when you need to make projects or go to NSTP/CWTS/LTS), you’ll be able to save Php 5,000 a year. Php 5,000 is the minimum of the Philam Bond Fund or the GSIS Mutual Fund. In 4 years’ time, you could save Php 20,000 and you could then start your retirement fund from that. Check the values under the Special Scholar bracket and you’ll see how your money should look like, over time.
Granted, there are pressing needs and projects to pay for. But I really believe that a prudent teen can and will be able to save a hefty sum if he is determined. In fact, for only Php 20.00 a day, a teen can start a good fund by the year’s end already.
As they say, when it comes to compound interest, time is your ally. The sooner you start, the better it is for you. In fact, most financial gurus say that the guy who starts earlier will trump up the funds of the guy who starts later, even if he invests aggressively.
So to Pisay Scholars: make the most out of your allowance and stipends. It’s never too early to start building your retirement fund. Don’t wait until the clock starts ticking and old age is looming. Here’s one for prudence.
-----
Credits to:
Arthess Castor, former Registrar/current Supply Officer, PSHS WVC
Marjorie Halique, Professor, UPV-Miag-ao Computer Science Dept.
Lionel Miroy, former PSHS Scholar and CPU Psych student
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