How to Save For Your Child’s Education

Education is costly and requires much thought and consideration. Without a proper savings strategy; you could find yourself running around for that extra cash to pay for your child’s education.

Ester Ochse, a product specialist at FNB Wealth and Investments says “With the increasing education costs; parents should take it upon themselves to plan and save in advance. Not forgetting that unforeseen expenses will pop-up from time to time. This puts strain on parent’s pockets; especially if these unforeseen expenses are not planned for.” She highlights the following points that could help in saving for your children’s needs:

  1. Start saving now. – It’s never too late to start saving – for the short or long term. Be it for crèche, nursery, primary or tertiary education, you need to make sure that you save enough so that our children receive the best education possible. Even a minimum amount of R 300.00 per month in a Savings Account can help in contributing to their future.
  2. Draw up a savings plan. – A savings plan is your blueprint to your savings journey. This plan should highlight your aims, objectives and goals for the year. Review this plan on an ongoing basis and ensure that you stick to your objectives.
  3. Goals. – Goal-based planning that encompasses both short and long-term goals are important. These goals can help you understand what your priorities should be and where your focus should lie. These goals will help you manage your finances and at the same time ensure that you have enough for all your expenses; including emergencies.
  4. Budget. – Like a savings plan, we need a budget. Budgeting may be a tedious activity but can help steer you away from unnecessary spending and will help you keep track of your spending. In your budget ensure that you list your child’s education fees, uniform costs, stationery, extra-curricular, medical expenses, textbooks to mention a few. Do a comparison on a year-on-year basis and see if your expenses have increased or decreased.
  5. Open a savings account. – Look at opening a Savings Accounts or Unit Trust for your child. Look at the interest and return on investment when deciding on which account to open.
  6. General school expenses. – Day-to-day school expenses will not end and will add to your budget quite drastically. Many schools advocate that children need to partake in extracurricular activities like netball, chess, modern dance – but these activities come at a cost. Ensure that you understand what your child enjoys doing before enrolling them in a class. This will leave you with less wastage and with a happy child.

Education is a must, and while school expenses are high, we should ensure that we save appropriately so that our children get the best possible education ever.

Source: FNB. Image: Pixabay.com

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