Wanita Isaacs, an analyst from Allan Gray, says that it costs almost 2R2.4 million for paying the school fees for Model C, and if one can save around R2 100 every single month starting from the say when his/her child is born, he/she will be able to reduce 21% of the education cost for the child even if their return on savings didn’t match up to the CPI.
So, how much do you think you need to save for the education of your kids and how shall you begin with the whole thing? Warren Ingram, the financial planner, says on this,
“You start with deciding on the kind of education you can give your children. People who earn well default to thinking they must go private. In other words, they want to give their children the best, versus what they can afford. It’s irrational.”
It is true that every parent would want their child to get the best of education but according to Ingram, one should go for the one they can’t afford. He says, “Money and children place the most stresses on a marriage, so you are creating the perfect storm by spending more than you can afford on your children’s education.”
Saving for the kids’ education should start from the day your child is born. As per the NSFAS (National Student Financial Aid Scheme), they provide loan and also bursaries to the learners at the colleges and private universities. In 2013, this particular scheme provided around R8.2 billion in loans to more than 450,000 learners at the FET universities and colleges.
Again, the Fundisa Fund is also a kind of savings account which pays the incentives to the parents of the learners who are saving for their children’s future education. Each year, their savings are rewarded by 25% their contributions which should be up to R600 per child. Basically, Fundisa was designed to help the learners who are not very well-off. Hence, it helps them to gain a further degree in a public college or university of their choice.
Savings is necessary for one and all and when it comes to the education of our children, it becomes even more vital to save for their future. The education sector is getting competitive day by day with an increased fee structure in almost all the well-known colleges and universities. Hence, look out for such saving options which will help you to keep the money for your little ones’ education intact so that they can get the degree of their choice in the near future without any glitches on the way!