Why do you need to save?
Inflation for education in South Africa is higher than the CPI Consumer Price Index and the gap has grown from around 2% since the year 2000.
I have two kids at school and both schools increased school fees by 7% over the past two years. Here is the thing over the past two years I have received an increase of 3% or less.
I want both my kids to get an education beyond high school. Let’s face it, not all of us is born in money, can be entrepreneurs or born geniuses. Most of us need a good education to help us get by in this world. So the sooner you start saving for your child education the better. I will suggest if you planning to have kids then start to save even before you have a kid.
Why is this so important for me? Unfortunately, my parents never had the money nor the foresight to plan this for their kids and also they had five of us.
Take the following stats into consideration:
By 2021 University fee will be about R85 000 p/a, bt 2030 it will be R176 000 p/a.
Save For Tertiary Education With Standard Bank
Standard Bank offers various ways for you to invest or save money for your child’s education.
- Bank Savings Account:
Not the best way to save for an education fund. Normal savings accounts do not offer good interest rates and also the money is easily accessible which might not be the best option as you will most likely make use of the money in case of an emergency.
- Tax-Free Savings Account:
This is a better option. Deposit an annual amount of R33000 p/a single or multiple amounts and you will not be taxed on the amount. Your money will also grow faster as the interest rate on these type of accounts is better. You may open an account in your children name as soon you have their ID number. Any money you save will become technically and legally your child’s money.
- Medium- And Long-Term Investments:
Standard Bank has a number of plans available. One such plan is Unit Trust, Unit Trust are ideal for planning towards your kid’s education. Also, Unit Trust offers the option of early access to the money just in case.
Contact or read more on Standard Bank’s money savings plans here:
Calculate your budget to see how much you can save a month.