Save for your child’s education

2018-07-18 06:00

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.

“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 parents’ pockets, especially if these unforeseen expenses are not planned for,” said Ester Ochse, FNB Wealth and Investments, product specialist.


OCHSE HIGHLIGHTS THE FOLLOWING POINTS THAT COULD HELP IN SAVING FOR YOUR CHILDREN’S NEEDS

• 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 ensure that you save enough so that your children receive the best education possible. Even a minimum amount of R 300 per month in a savings account can help in contributing to their future.


• 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.


• 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.


• Budget

Like a savings plan, we need a budget. Budgeting may be a tedious activity but it 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 and textbooks, to mention a few.

Do a comparison on a year-on-year basis and see if your expenses have increased or decreased.


• Open a savings account

Look at opening a savings accounts or Unit Trust account for your child. Look at the interest and return on investment when deciding on which account to open. FNB offers a wide range of savings accounts which give you the option of accessing it now or later.


• 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 and modern dance, etc. 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,” said Ochse.

— Supplied.

It’s never too late to start saving, for the short or long term.

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