Saving for your child’s education

Saving for long-term goals such as education should be a key objective for everyone. Here’s a 10-point plan to ensure that you have enough for your children’s needs: Choosing a good school for your child is never easy and requires research. Some of the key factors that you need to consider are: location; acessibility and cost. It’s never too late to start saving for crèche, nursery, primary or tertiary education. Even a minimum amount of R 300 per month can help. If saving is difficult for you, then look at savings accounts or unit trusts that offer you great interest and return on investment. This is dependent on your budget and preference. Whichever options you choose ensure that the school is a right fit for your child and they’re comfortable with the space, environment, teacher and other children. Ensure your budget is up to date and that you’re not overspending in places where you don’t need to. Rather predetermine what schooling expenses you think may come up and add this to your budget. There are many budget templates you can access that will help you through the process. This includes tuition, school, and medical fees to mention a few – we cannot avoid these costs. Day-to-day school expenses won’t end and will add to your budget quite drastically.

Many schools advocate that children partake in extracurricular activities – but most of these activities have related costs. Ensure you understand what your child enjoys doing before enrolling them in a class. Most parents in many households need to work to sustain their current lifestyles. With this mind, you may need help at home to look after your children during the day. Recycle and get your children’s textbooks via a second-hand shop or a family friend who’s just completed the course/grade. Schools require that students wear a summer and winter uniform. Instead of buying a new uniform, go to the second-hand school shop. You could also buy a bigger size so that they can use it the next year.

Ester Ochse is an FNB product specialist.

Picture: Shutterstock It's never too early to teach your children the 'pay themselves first' principle, by first allocating pocket money to their budgeted savings before spending, and not only if there's anything left over after spending, says Ryan Prozesky of FNB.