When you have a baby, you want to make sure that your child’s future is secured, especially when it comes to their education. With the cost of education rising every year, it’s best to start investing as soon as possible.
With the increase on education inflation possibly reach up to 9,5% looking into saving for towards your child’s future becomes a reality. Investing in an education plan is important and will put your mind at ease when it’s time to take your little one to school. If you invest now you have about 5 to 6 years to earn interest on your investment before they start school.
Mother of 1 year old Asiphile, Nandipha Sixam shares that she “Started saving two months after he was born”. She says it’s best to start saving “As soon as the baby is born”. As a new mommy she suggests “Research the cost of education and the type of school you want to take your child to”. To balance between current expenses and needs of Asiphile they shop every 3 months for him and she opened an Education plan for his education which debits from her account every month.
Simlindele Manqina, father of 6 month old Azania, is also new to parenthood. He explains that they have not yet started saving for Azania's education but believes that now is the time to start thinking about it. He explains that "We are certainly planning on saving, the first step will be to consult a financial advisor." However, they haven't researched the cost of education and the kind of school they want her to attend as she's only 6 months.
Leading up to the Budget Speech, Old Mutual's Head of Financial Education, John Manyike explained that parents need to also consider additional expenses apart from school fees, "You also need to factor in the costs of school uniforms, textbooks, stationery, transport, food, extra lessons, extramural activities, pocket money, accommodation, etc. when putting together a financial plan for your child's education." He further encourages parents to seek financial advisers "To explore savings instruments that offer inflation-beating capability". Find out about the different types of education savings plan when visiting a financial adviser.
Here are a few tips to ease the stress:
- Figure out which school you would like your child to attend from the time they are born
- Research how much that will cost you in the long run considering factors such as inflation, uniform, extra mural activities
- Seek financial advice on which education plan would best suit your income and livelihood
- Evaluate your investment every year in case of unforeseen circumstances
- Don't wait for the perfect moment to start saving