The best time for education planning is around the time your child is born. That way you have lots of years ahead of you to save money in an education fund. If you didnt start saving for education when your child was born then the next best time to start is now. Pre-school, primary school, high school and any tertiary education isgoing to cost money.The trick is not to let the figures scare you.
Youll probably be able to absorb the school fees in yourmonthly budgetso just focus onsaving whatever amount you can on a regular basis. And, if you dorun into difficultiesyou can simplystop your debit order and restart itagain when you can (if you invest in a tax free account or unit trust). You dont lose your money. Or, if you have a policy you canmake it paid upwhich simply means you can stop contributing and leave the policy until the end of the investment term.
I cant afford to save for my childs education
You can! Here are a few ways to save every month.
1 less packet of cigarettes per week: R130/month.
There are hundreds of career options available nowadays, with many more still to come. Play with our funOMFutureMirror toolto imagine your childs dream career and to also start thinking about saving for their future. Just think back a decade or two data scientists, search engine optimisers and social media lawyers didnt feature on the options to study list and yet today they are sought after skills!
Whats even better is thattraining for their preferred career choice is not limited to universities. There are a number ofaccredited institutionsin South Africa that are able to provide thetraining and qualificationsneeded in order for your children to start working in acareer of their choice.
We cant tell you the exact figures but we can give you a guide.
Education inflation(currently at 9%) is one of the reasons many of us struggle to save enough to cover the cost of school and university fees (and all those extras). Add to that thecost of uniforms,sports gear, music lessonsand for some,extra mathsandscience lessonsand youre looking at a rather daunting sum.
Make your money work for you!You want to be able to invest your money where you can get inflation-beating returns. That means investing it in a savings vehiclethat provides capital growth(thats growth for your money) over the medium- to long-term. The more time you have to invest your money themore time it has to grow.
While we cant predict what your education fund is going to deliver in the future we can look back and tell you what the results could have been. Sindis parents started saving R250 every month in the Old Mutual Investors Fund shortly after she was born 19 years ago. They now have R219 000 to pay for Sindis BCom degree at the University of Cape Town*.
(*Source: R250/month in the Old Mutual Investors Fund Class R; 31.03.2000 31.03.2019)
Sindis parents started saving R250/month in the Old Mutual Investors Fund 19 years ago. They now have overR219 000 to pay for Sindis BCom degreeat the University of Cape Town.
Take a look at the table below to get an idea of the average costs you are likely to pay for primary, high school and university education in the future.
Caption: The cost of education is expected to increase by about 9% per year.
Try our online education savings calculator to see how much you need to save.
Old Mutual is over 170 years old which means were able to offer you expertise gathered over the years to structurean education plan thats right for you.
We offer yousolid, steady returnsto help you meet your education savings goal.
Our fund managers (theyre the ones that invest your money) investtheir own moneyin the funds they manage. Now thats commitment for you.
Saving for you your childs education is a medium- to long-term commitment. There are various education funds you can choose from. Some education savings plans are available directly online and others via financial advisers.The table below gives a brief comparison of the products.
Old Mutual offersinvestment products, life and disability cover, funeral plans, short term insurance, financial advice and loans. We also offerbusiness-to-business solutionssuch as asset management and employee benefits. Please select one of the options below for more information.
Old Mutual Limited(OML) is a premium African financial services group that offers a broad spectrum of financial solutions to retail and corporate customers across key markets in 14 countries.
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