Planning ahead for your child’s education

Marius Pretorius

With the cost of education increasing annually at a higher rate than inflation, and average salaries barely keeping pace, putting your kids through school needs to be part of a considered financial plan.

According to Statistics SA almost two in every ten potential pupils are unable to attend school or a tertiary institution due to a lack of funds. This is extremely worrying and suggests that many parents aren’t planning sufficiently and aren’t aware that help is out there.

While government has an- nounced that students from working-class homes would qualify for free higher education from this year, offering some relief, fees are only one part of the equation and parents should continue to factor in the additional expenses related to education.

Many South Africans are too overwhelmed by trying to satisfy the most basic of needs such as food, shelter and clothing.

This is where great financial advice and holistic financial planning could make all the difference. The value of financial advice lies in its ability to help stretch and grow whatever money you have.

A good financial adviser will work with you to help you create a financial plan that suits your life.

Working with a financial adviser to save effectively for your child’s education means you don’t need to grapple with this daunting responsibility on your own. It also means you will devise a strategy that is sustainable and doable without financially burdening your children or community down the line.

Tapping into precious retirement savings or taking on expensive debt to enable your child to go to a good school or university may seem like feasible solutions, but they could have uncomfortable long-term consequences. For example, you may have to depend on your children or community at a later stage to service the debt you took on or to help fund your retirement.

Starting to plan as early as possible is the best gift you can give to your children.

Marius Pretorius is at Old Mutual.