If not, now is the time to start!
“Education is what survives when what has been learnt has been forgotten” – B.F Skinner.
Proper financial planning is vital when one considers the changes in the education environment today:
It has been estimated that, in today’s terms, schooling could cost approximately R2,2 million to get one child through school with a quality private school education. On average, annual increases in school fees are calculated at approximately CPI plus 2 or 3%.
Statistics show that a child in Grade 1 will cost approximately 18% of a household’s nett income in school fees and that will increase to 72% in the child’s matric year. There’s also the question of funding tertiary education, although that often comes at a lower cost than schooling.
Provision for this cost needs to be planned for and, if not, it can have a negative impact on one’s overall financial outcome. Proper needs based financial planning will take care of this.
What also needs to be taken into consideration, as this can have serious consequences, is that statistics confirm that approximately 25% of parents will suffer either a disability, dread disease or possibly even pass away while their child is still at school, leaving enormous pressure on the surviving family to maintain this high cost. With careful planning, this can be avoided.
This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted. (E&OE)