Investing in an education plan is important, we know that. What isn’t always clear is how much it’s likely to cost you, the timeline and how much we can afford to invest.
The cost of education is expected to increase by about 9% per year. This means that in 10 years’ time you could be looking at school fees of around R50 000 per annum – and that’s for a public, not private school!
Add to that the cost of uniforms, sports gear, music lessons and for some extra maths and science lessons and you’re looking at a rather daunting sum.
This is especially true if you have two or more children that are close to one another in age. You should also be sure to think about what may happen in the future, such as any medical bills that you may need to take care of or a change in careers which may lead to a pay decrease. Saving now can help ensure that you do not have any problems trying to save money for your child’s education later on.
The idea of starting to save early is certainly not a new one. However, it’s the ‘how’ and more importantly the ‘how much’ that need a bit more explanation. The best place to start is with your household budget – this will tell you how much you have available to invest.
Old Mutual offers a variety of smart tools and products to get you started on making your child’s vision of what they want to become a reality but if you prefer sound financial advice, then please contact us on 0861 11 14 15 and an Old Mutual Personal Financial Adviser will help you.