Start to saving as early as possible for university fees
Parents can avoid the shock of tertiary education fees by starting to save as early as possible. While there are various education savings vehicles available, a personal finance specialist recommends that parents look at the solutions best suited to their budget, time frame and their individual requirements.
The payment of university fees is still a major consideration for many South African students, with costs expected to rise over the next decade. According to recent data published by Old Mutual, parents/students can expect to pay R64 200 for the first year of university – on average. This is expected to rise to R107 600 by 2025 and as much as R165 600 by 2030. Fees are typically charged per module needed to make up the credits of a given degree.
“There are hundreds of career options available nowadays, with many more still to come. Just think back a decade or two – data scientists, search engine optimisers and social media lawyers didn’t feature on the ‘options to study’ list and yet today they are sought after skills.”
“To set your child up for lifelong success in whichever career he or she chooses, it is essential that you have an appropriate financial plan to back it,” says a Financial Adviser.
Depending on your needs, you can choose between solutions starting from as little as R200. This means by simply cutting out eight coffees a month, you can start saving for your child’s education. Re-framing education savings in this way can help parents who are worried about where they’ll find the extra money on a monthly basis.
There are hundreds of career options available nowadays, with many more still to come.
“To set your child up for lifelong success in whichever career he or she chooses, it is essential that you have an appropriate financial plan to back it,” he concludes.