The question often arises, “When should I start saving for my child’s education?”
The answer in such a case would be that you should have started already. In an ideal world you should start saving for your child’s education even before they are born as to build up enough capital to pay a yearly fee for the institution where your child will be attending as to receive the appropriate discount available at most schools. It is a common misconception that you only have to be ready for school fees when your child goes to grade R at the age of 6, but with mounting pressures from the workplace it is becoming more and more the norm to start sending your child to a daycare center at 4 months of age.
It is estimated that the cost of putting your child through their schooling career from Grade R (2019) to a 3 year university qualification should be in the region of R1.4m for a public school and R3.4m for a private school.
By making the right decisions early in life with regards to your investment portfolio, you will effectively be implementing the 8th wonder of the world nl. “Compound interest” and enjoying the interest on the interest that you have already earned and making your money work you.
By starting an investment from as little as R250,00 per month you are securing the future of your children, a loved one or yourself.
Always remember the golden rule: “ A small amount of money, monthly, becomes a large amount a money over a long time”
by Cloete Greeff (Financial Adviser)