Your child’s high school and tertiary education could cost anywhere between R500,000 and R2 million. It’s easy to see then that it would be a difficult task to attempt to save that money in a few short years.
The idea behind an education fund is to allow you to fund the gap between your salary increases and the increase in school fees, which tend to increase faster than inflation. While you may be able to afford your child’s primary school fees, by the time they reach high school those fees will very likely be a lot more than you ahd anticipated. This is due to the high demand for quality high schools.
The best way to provide for your child’s education is to start saving from the day he/she is born. To boost those savings you could ask family members to add money to their education fund rather than buying birthday presents. Children need an education more than they need toys. They’ll thank you in the long run.
Many of us complain about the cost of education, yet we have no qualms about spending R5,000pm on a new luxury car. Your child’s education is far more valuable and it does not depreciate in value over time. When you buy a house, a car or take on any form of debt, make sure that you don’t do so at the expense of your child’s education.