Education Is Worth Saving For:
Do you have children? Are you saving for their education? Most people rely on good quality education to provide for themselves and their families. If you only completed high school and did not attend university or college then you might not be in a position to provide for your family like you want to. Are you currently in that situation? Break that cycle and make sure that you save for your children’s tertiary education. A good education is one of the best investments you will ever make.
The Cost Of Education:
Education is getting more and more expensive. On average education increases by 8% or 9% each year which is 3% above the (CPI) inflation figure that means that education is increasing faster than our average salaries. Currently, three years of education at a university cost about R400 000, so adjusting for the 3% education above inflation increase that means by the time your five-year-old child go to university it will cost over R1 million for three years of education. Will you be able to afford that?
Start Saving As Soon As You Can:
So you want your five-year-old child to attend university when he or she is 18 years old, you will have to save at least R3 000 to R3 500 per month. That is a scary amount and not an amount most of us can afford. Do not let it discourage you from saving at all. Higher education is expensive, and the benefit of saving whatever you can outweigh the sacrifice of saving money for your child’s education no matter the amount you can afford to save.
So What Can You Do?
To beat the inflation from education cost you need to invest in investments that outperform the CPI. There are many saving plans available in today’s market. Shop around and make sure you find a plan that suits your budget and will not charge too much in management fees. What you must remember is that the longer you invest the greater the benefit you will receive from the fund.
Get More Advice:
Consult with an investment adviser to advise on what invest will benefit you and your kids to provide for their tertiary education. Most of the Financial Institutions offer Educational saving plans and free financial advice.
Contact one of the following companies and speak to one of their Financial Advisors:
OldMutual Education Planning: Tel: 0860 947 366 (0860 WISDOM)
Momentum Education Planning: 0860 784 767
Sanlam Education Planning: 0860 100 266