SPENDING the weekend in Tagaytay didn’t seem to be a good idea at first. Vacations, even short and simple ones, cost money. Money Smarts was just a little bit cranky, adding up the cost of gas, accommodations and food in her mind. 
But as our little family car left behind the hustle and bustle of the city, the swaying coconut leaves and gentle rolling hills of Tagaytay slowly lifted our spirits, willing our city-tired muscles and tense nerves to relax.
This trip got me thinking about times when it’s best not to hold back on spending. Money Smarts is all about discipline, restraint and, well, being money-smart of course, but there are times when holding the purse strings too tightly may not be a good idea.
EDUCATION: Ateneo de Manila recently documented how some public school students in Marikina City beat their counterparts in private schools in Math and English. I kid you not. They did. The researchers discovered this was because of hard work, discipline, sacrifice and good priorities. The children told of how their parents would make sure they weren’t hungry when they were taking tests. This is significant because the parents had to skip meals themselves to feed the children well. These parents really get it. They know their priorities.
Don’t scrimp on education. The dividends from a good education cannot be matched by any investment instrument in the world.
INSURANCE: After paying debts and saving for an emergency fund, insurance should be the next priority — especially with kids in the picture. Most Filipinos avoid insurance agents, or buy the smallest coverage just to get the agent out of their hair. My insurance agent didn’t have to sell the product to me — I bought it from her. I knew that was the most responsible thing I could do for my children.
When you buy insurance, get the best coverage your budget can afford.
HEALTHCARE: Hang out for a few minutes in a drugstore and you’ll see people “diluting” their prescriptions. They will take three days’ worth of antibiotics, for example, instead of one week. That’s very, very harmful. Sorry for the cliché but health IS wealth — no amount of money can buy it.
VACATION: if I were to choose between toys and vacation, I’d go for beach walks, mountain climbing, even simple and short trips once a year. I would even choose this over a few thousand pesos more in the bank.
Why? Some would say this is a luxury. To me, good memories matter especially to children. For most parents who try their best but still can hardly spend 100 percent of weekends with their family, I recommended adding an annual vacation in the family budget.
This is the time to do nothing but sing silly songs, play hopscotch, watch sights together, swim till after dark. Don’t bring your laptop. Chuck the manila folder full of office documents. Spend a few romantic nights with the wife, too! (Wink)
Of course, it goes without saying that this should not be an excuse to max out your credit card to get a dream vacation. I would keep it simple if that is what the budget could allow, but I would definitely make financial space for it. Trade expensive Christmas and birthday toys and gifts for an annual vacation to free up some cash if needed.
May 11th, 2007 at 6:17 pm
I had an extended trip in the US last year. It was a business trip but I decided to extend and “see” US for a few more days. Expensive? Yes, poured out a lot from my savings. But the memories last. My best vacation ever. But an annual vacation might be too much on the budget for now.
May 4th, 2007 at 3:16 pm
Re that special price for active insurers, it would indeed be nice to have it
But you’re right, it might be ripe for abuse by both the consumers and the agents (who might be more inclined to hide information about their products to prevent you from buying them directly).
But i’m thinking, in the brokerage industry, there are discount/online brokerages who charge smaller fees since they’re less service-intensive. Might there soon be a concept of discount/online insurers? Maybe there are already are, i just don’t know about them.
April 30th, 2007 at 10:13 pm
Hi Salve, RE: VACATION…Don’t bring your laptop… I have a cool place in Tagaytay where I enjoy weekend, no internet that’s why hachiko never posts here on weekends
Like you I also value leisure time over toys and stuff that just gather dust over time. You saw my friendster pics in Europe, oui madame? 
April 30th, 2007 at 8:41 am
Hi Fred, i understand your situation. We all try to do the best we can in our situation. Someday soon, I’m sure you wouldn’t have to choose between a vacation and a secure financial future. Perhaps there will be a way to have both :-), even if it means that vacation is a simple one-day outing to a nearby beach. A secure financial future for our family will only be meaningful if our family is intact.
April 30th, 2007 at 8:36 am
hi hachiko, i did that when i was starting a family and could not afford the life insurance coverage that i wanted. If i remember right, i needed a 2M policy at that time and the rates were just too high, what with household upkeep, tuition for pre-school etc., i couldn’t afford it. From experience, agents will never sell term insurance — the commission is absolutely nil. That’s why you have to ask them for it and be firm that that’s the only product you will buy at this season in your life. The weakness of term insurance, however, is that as you age they become very expensive. So for young parents who are struggling with other priorities, go for term so you can get the coverage that you need instead of buying a smaller coverage just so you can afford it. But as finances improve, find a good life insurance that will fit your priorities. They are not a one-size fits all product.