Funding a future
PEOPLE FROM ALL spheres of life, cultures and backgrounds recognise the need for planning in order to give children and other loved ones the opportunity to study. While not all graduates will find their dream jobs immediately on completion of their studies, it is generally true that a good tertiary education will provide a person with the best chance possible for starting a career.
However, very few decisions in life do not revolve around money and the decision of whether to study or not is no exception. Saving for an education may seem overwhelming when you are already burdened by monthly mortgage and car payments, school fees, petrol/transporta- tion costs, rising food prices, etc. So how exactly does one tackle this problem? First, it is important to realise that even if one cannot save the total amount required to fund a full university tuition, every bit saved will help when your child wants to study after school. Any shortfall may be funded with a study loan and students can also earn additional income from part-time work while studying.
Secondly, the effect of compound interest makes it more efficient to start early than to save a lot later. Generally speaking, you will be better off if you start saving a small amount regularly before the child goes to school for the first time, than if you save a large amount later when s/he goes to high school.
While there are many different investment vehicles available on the market, most people use either unit trusts or an endowment to save for education. A qualified financial planner will be able to assist you in selecting the best investment vehicle for your needs.
In order to make the dream of education a reality, hard work (which includes making sacrifices) is required from both children and parents. Mark Twain, the American writer and humorist (1835-1910) said:
“ The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one.”
The first task in solving the education dilemma is to start saving today!