Are you saving enough for your child’s future?

Published on 25th June, 2024 at 10:19 am

Tertiary studies can unlock opportunities for your child to succeed, but a good education isn’t cheap. Are you prepared for the costs? Take our quiz to find out.

Reading time: 5 minutes

In this article you will learn:

• How prepared you are for your child’s tertiary studies
• Why it’s important to start saving early and consistently
• Tips from an expert

Quiz:

1. The way things are, my child will probably…

1. Finish school and work to pay for studies.
2. Work and hopefully move up the ranks.
3. Have the freedom of choice to study after school.

2. We’ve been saving for our child’s studies since…

1. … they began high school.
2. Never.
3. they were born.

3. If you can afford studies for your child, how long will the savings last?

1. Probably the first year or two.
2. We will have to rely on a loan if we don’t get a bursary.
3. We have enough saved for three years of study.

4. What savings goals have you set for your child’s future?

1. We don’t have a goal – I’m just saving whatever I can.
2. We haven’t set a goal beyond their matric.
3. We’ve set a figure and prioritise that over unnecessary spending.

5. You’ve spotted a deal on a flat-screen TV. What do you do?

1. Tough decision. Those savings are tempting…
2. Deals don’t come along every day!
3. Deals come and go. My child’s education is more important.

6. What are you using to save for your child’s education?

1. We’re saving with a normal bank account.
2. Nothing at the moment.
3. We have a monthly debit order to a unit trust.

Answers*:

Mostly As (moderately prepared):

You have the right idea, but consistently saving will be more rewarding. “Make savings a compulsory deduction,” suggests André Wethmar, a senior financial planner at FinPrufe Wealth BlueStar, underwritten by Sanlam.

Mostly Bs (not prepared):

Not saving, or not saving enough, could mean you or your child will be saddled with student debt. “Pitfalls of not saving include high interest on student loans, and the liability on your child when they start their career to repay this debt,” says Wethmar.

Mostly Cs (well prepared):

It seems you are on track to securing a bright future for your child. Keep it up! To optimise your savings, Wethmar suggests reviewing your strategy with a financial planner annually.

3 Steps to preparing for your child’s education

1. Start saving early. The sooner you start, the more savings you can build for your child’s future. “Every month, a small amount with compound interest can get you to the finish line,” says Wethmar. Use our savings calculator to work out how much to put away.

2. Plan well. A financial planner will be able to help you decide what savings vehicle to use to grow your child’s education fund. Book a meeting now.

3. Don’t be tempted. “Do not withdraw money for other expenses during the savings journey,” says Wethmar. This will set you back on reaching your goals.

*This quiz is not intended to replace the advice of an expert, a professional financial planner, or a debt counsellor.