With the cost of living expenses increasing, petrol prices, and an uncertain rand, paying school fees can be extremely stressful. Although there’s no excuse for putting school fees at the bottom of your budget, for some parent’s fees that seemed reasonable last year are now a real stretch, especially if you’re behind on other debt re-payments.
A responsible parent wants to ensure the best future for their child/ren – and one of the best ways to give your child a good start, as well as give them an opportunity for future success is to help them get a quality education.
However, 56% of South Africans, however, are not saving for their children’s education.
The bad news is that the cost of education rises faster than inflation – so, if schooling seems expensive now, in the future, it will be even more to stay on top of all the fees. If you have or are going to have a child soon, here are a few top tips for saving for school:
Start saving when your child/ren are still young will take away the financial worry of not having sufficient funds to give your children the best education. Remember that your funds in your investment will grow every year if you plan properly.
Save your savings automatically
Open a dedicated savings account and set up a monthly debit order. This way you will automatically save money every month. However, make sure that you stay disciplined and never withdraw any money from this account if it is not related to your child’s education.
Discounts are your friend
Research and contact schools to find out if they offer financial incentives. Most schools offer discounts if the fees are paid as a once-off amount in advance. Some schools also offer a discount when there is more than one child attending the school. These types of savings can make a big difference so do your homework and see what’s out there
Grow your savings
If you received a salary increase, why not sign a debit order immediately to put some of your additional income into a savings account. Commit to increasing that every year if possible.
Set reachable goals
Let’s face it, it’s very difficult to save enough money to pay for your child’s secondary or tertiary education in full. Rather focus on saving towards the growing gap between your salary increases and the increase in school fees.
Watch your debt
Some parents moan about the cost of education, yet they drive around in an expensive car and live beyond their means. Always remember that your child’s education is far more valuable than a luxury car and set your child up for success one day. When you buy a house, car or take on any debt, do not do it at the expense of schooling.
Struggling to stay on top of paying school fees and other payments? Why not get your debt in check with our trusty team at Meerkat. We’ll deal with all your creditors on your behalf, leaving you to focus on what matters to you most.
Contact us today for a FREE no-obligation debt assessment.