When scrimping is not a good idea

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.

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