Saving for your child's education

We all want the best for our children, but let’s face it, when you’ve just had a baby, you’re usually not thinking about education. You’re too busy trying to deal with increased medical costs, disposable nappies, milk formula and child care. The timing of having a child usually also coincides with buying a home and paying a mortgage loan. Before you realise it, your child is getting ready to go to Grade R and that’s when the reality usually hits you: Education is expensive!

Including tertiary education, you are looking at an average of 16 years during which you will have to pay for your child’s education: Pre-primary school (1 year), primary school (7 years), high school (5 years) + university (3 years). With education costs increasing at a rate well above inflation, you need to do some smart planning for this long term expense:

“Education is the most powerful weapon which you can use to change the world”, Nelson Mandela.

Fundisa

This joint venture between the government and ASISA member companies rewards the savings efforts of families earning less than R180 000 with an annual bonus of up R600. It may not be much, but every bit helps!

Scholarships

Many good schools offer scholarships but you need to apply approximately 12 months in advance. Do research on what’s available.

A financial planner

Could assist you in calculating the amount which you should save and give you advice on the most suitable savings mechanism, for example, an education policy.

Have a goal

Do the calculation of what it is going to cost and what amount you need to save each month.

Start early

Preferably even before baby is born! Open up an account and have friends and family make a contribution to the education fund when baby is born rather than giving gifts.