Ask any parent who has children in private schools or at university right now, and you’ll soon realise just how expensive South African education has become. Rising school and university fees mean that some parents are paying close to R100 000 a year for private high schools and good universities this year – and the prices aren’t about to fall anytime soon.
Can you really put a price on education?
Education is the first step in every successful career, and every parent dreams of seeing their children succeed – but is it affordable? It may be nice to think that education shouldn’t have a price, but it does. The sooner you calculate the cost of your children’s education requirements, the better you’ll be able to plan for them – whether your child is a year old or turning fifteen.
Treating education as an investment
“Putting your children through good schools and universities is an investment in their future”. If you agree with that idea (as most parents do), it’s time to do some investment planning. Let’s begin.
A solid education will go far in setting up your children for life, allowing them to reach their full potential and enjoy successful careers. It also means that they’ll be financially independent, allowing you to enjoy your retirement to its fullest. Here are some steps you can follow to ensure that your children receive the education they need:
- Start when they are young – the sooner you start investing for your children’s educational costs, the easier it will be.
- Find out how much it will cost to educate each child – your financial advisor will assist you in reaching a realistic figure, based on current prices and inflation.
- Start saving and investing. Once you have your target in mind, you’ll need to reach it in time – you can postpone buying a holiday home, but your children can’t wait five years to finish school.