Save for your child’s education
Take it upon yourselves to plan and save in advance for your children's education – Bank.
Education is the best gift that any parents can give to their child, and saving for it is important, said FNB.
According to Ester Ochse, First National Bank Wealth and Investments, Product Specialist, parents should take it upon themselves to plan and save in advance for their children’s education.
Don’t forget, though, that unforeseen expenses will pop up from time to time, putting additional strain on parent’s pockets. This means saving for a specific purpose, as well as saving for the unknown.
Ester highlighted the following points that could help in saving for your children’s needs:
1. Start saving now!
It’s never too late to start saving – for the short- or the long-term. Be it for crèche, nursery school, primary, secondary or tertiary education, you need to ensure that you save enough so that your children receive the best education possible. Even a minimum amount of R300 per month in a savings account will contribute to their future.
2. Draw up a savings plan
A savings plan is your blueprint for your savings journey. This plan should highlight your aims, objectives and goals for the year. Review this plan on an ongoing basis and ensure that you stick to your objectives.
3. Goals
Goal-based planning that encompasses both short- and long-term goals is important. These goals can help you understand what your priorities should be and where your focus should lie. They will also help you manage your finances and at the same time ensure that you have enough for all your expenses, including emergencies.
4. Budget
Like a savings plan, we need a budget. Budgeting may be a tedious activity but can help steer you away from unnecessary spending and will help you keep track of your spending. In your budget, ensure that you list your child’s education fees, uniform costs, stationery, extra-curricular activities, medical expenses, textbooks and so on. Do a comparison on a year-on-year basis and see if your expenses have increased or decreased.
5. Open a savings account
Look at opening a savings accounts or a unit trust for your child. Look at the interest and return on investment when deciding which type of account to open. FNB offers a wide range of savings accounts that give you the option of accessing your funds now or later.
6. General school expenses
Day-to-day school expenses will not end and will add to your budget quite drastically. Many schools advocate that children need to partake in extracurricular activities like netball, chess, or modern dance – but these activities come at a cost. Ensure that you understand what your children enjoy doing before enrolling them in a class. This will leave you with less wastage and happy children.
“Education is a must, and while school expenses are high, we should ensure that we save appropriately so that our children get the best possible education ever,” Ester concluded.
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