At the start of every new year, parents feel the impact of the rising cost of their children’s education on household budgets.
With education inflation surpassing general inflation of 4,7 per cent at nine per cent this year, the future is unlikely to get easier, explains Jean Minnaar, investment and savings manager at Old Mutual Emerging Markets.
Minnaar suggests that the long-term solution is to start saving today for your children’s education.
“We all want the best for our children and this means getting them a good education to ensure that they become both financially independent and fulfilled in their careers,” he says.
He continues: “If your child is starting grade R this year, the combined cost of education to a three-year university qualification is expected to be R1 million for public schools and R2,4 million for private.
Minnaar points out that your monthly savings will also need to be increased by 9 per cent per annum, to keep up with higher education inflation.
“Start early, even if it’s only a small amount each month,” he says.
- Also read: Invest in your child’s future
