AS much as we take saving very seriously this Savings Month, July, it is very important that we don’t forget we need to save for our children’s education.
With the increase in schooling costs, parents must make plans to make sure that their children are educated.
Ester Ochse, a wealth and investments specialist, offered some advice to parents on how they could save for their children’s education.
Start saving now
It’s never too late to start saving – be it for creche, nursery, primary or university. A minimum of R300 a month in a savings account can do it.
Draw up a savings plan
This plan should highlight your aims, objectives and goals for the year. Review this plan on an ongoing basis and make sure that you stick to your objectives.
These goals will help you manage your finances and at the same time make sure that you have enough for all your expenses – including unexpected emergencies.
Make sure that you budget for your child’s education fees, uniform costs, stationery, extracurricular activities, medical expenses, textbooks and other expenses.
Open a savings account
Open a saving accounts or unit trust 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 money now or later.
General school expenses
Make sure that you understand what your child enjoys doing before enrolling them in a class. This will save you wasting money and result in a happier child.