Education - the hidden costs explained
When the going gets tough, the tough stay focused on the future. No matter how sluggish the economy is, or how unknown the future of work is, smart parents know that a good education remains the surest way to safeguard your child’s future
For this year, your monthly costs for school will be around R3 500 for public school and R8 500 for private school. This may be a significant chunk of your monthly budget and excludes any additional costs like uniforms, stationery, extramural activities, sports or club fees and extra tuition.
The Money Show interviewed John Manyike, Head of Financial Education - Old Mutual.
Here are 5 tips to help you save:
- Draw up a budget and stick to it
Knowing what you spend your money on - and how much - can highlight areas where you can cut back. Apps like 22seven by Old Mutual can help you categorise your spending. You can also set saving goals and action them through the app.
- Increase your income
Are you a baker, crafter, Zumba instructor, DJ, photographer or writer? Using your skills after hours and on weekends can help you supplement your income. You’ll need to balance your time carefully, but this extra money could be used to save for your child’s education, meet any monthly shortfalls, fund a well-deserved break for you and your family or set up an emergency fund.
- Shop around
The internet has made virtual shopping for bargains a breeze. There are many surveys that compare specific items from different retail stores and show you which is the best deal for you. Buying items like stationery or washing powder in bulk when they are on sale can save you quite a bit too.
- Maximise your loyalty programmes
Many retail stores now offer all sorts of benefits and discounts through their loyalty programmes. Familiarise yourself with the rules, how you can earn maximum points or capitalise on savings. Old Mutual Rewards gives customers a percentage of their premiums back in points. You can use these to reinvest, to spend with a range of partners or to buy a voucher. Your next mani and pedi could be on the house!
- Give a gift for the future
Instead of giving your children expensive gifts, opt to give them a smaller present and then top up their education savings or unit trusts with the rest. This is a great way to teach them about delayed gratification. Let your family and friends know that they can also contribute to this fund instead of buying big gifts.
Inflation regarding the cost of education is currently set at 9%.John Manyike, Head of Financial Education - Old Mutual
There is no doubt that our education system does need some overhaul . Let'ts look at future careers like artificial intelligence . If the quality of labour is not going to get beter our situaton is going to get worse. What do school leavers have to offer the job market. We have to save for our children's futher education after school.John Manyike, Head of Financial Education - Old Mutual
About 55% of urban parents are not saving for their children's education at all. If you're failing to plan you're planning to fail.John Manyike, Head of Financial Education - Old Mutual
Listen to the full sound clip below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.
National Consumer Commission director of prosecutions Joseph Selolo says you can't be naive or claim to be duped.Read More
Following a cabinet meeting, Winde said that the province had sufficient health capability to manage COVID-19 patients.Read More
From 50 finalists the three winners have been selected and they represent top adaptive thinking in business right now.Read More
'Mr Eazi' launched the Africa Music Fund to support the continent's creative talent. Bruce Whitfield interviews Lee Kasumba.Read More
Justin Chadwick (Citrus Growers' Association) says it's all thanks to the perceived immune-boosting attraction of Vitamin C.Read More
Bruce Whitfield interviews Whitey Basson, who believes it's just not good enough for govt to say ban will be lifted but not when.Read More
Bruce Whitfield talks to MTN CFO Ralph Mupita about the reasons for the move and the company's huge profit increase.Read More
Marc Lubner on the NGO's programmes for young South Africans and how working with Nelson Mandela inspired his life's work.Read More
Involved in an accident you didn't cause? Third party claims don't pay out much. Wendy Knowler shares one driver's horror story.Read More
Liberty's David Munro tells The Money Show its R3b pandemic reserve shows the insurer 'truly living out its purpose'.Read More