Give your child the best education you can afford – here’s how to invest
In hyper-unequal South Africa, the difference between living a good life and poverty often comes down to education.
Parents know this, and heart-breaking stories abound of sacrifices they make to afford a good education for their children.
In the tiniest of nutshells:
Saving up is always better than using debt.
The earlier you start the better.
The asset allocation (i.e. share vs property vs bonds vs cash) depends on how long you have left to invest. The longer you have; the more you can opt for potentially more lucrative (though volatile over short terms) investment such as shares.
Open a tax-free savings account in your child’s name. The growth is tax-free.
Consider asking that grandparents contribute to school fees.
For more detail, listen to the interview in the audio below.
This article first appeared on CapeTalk : Give your child the best education you can afford – here’s how to invest
Source : https://www.123rf.com/photo_85280305_elementary-school-boy-reading-a-book-at-his-desk-in-class.html