Parents are advised to decide what school they’d like their child to attend when they are born so that they can start saving.

Certified financial planners advise since tuition fees are rising it’s important to prepare ahead to make sure your children have access to the greatest options without having to worry about finances.

Putting money aside for your child’s education gives them the means to follow their goals and it opens the door to a better, safer future.

Putting money aside for your child’s education is very important. Photo: iStock

“A policy schedule is more of an old-school way of saving for your children’s education. Nowadays, I advise people to open an investment account for their children,” said certified financial planner, De Markhoff Fouché.

“This can be done at any investment company, it is an open platform that is unitised so you can buy units each month and you can make withdrawals any time you want, there are no withdrawal fees.”

Old Mutual has five tips to keep in mind:

• Figure out which school you’d like your child to attend. You can start thinking about this from the time they’re born.
• Research how much attending that school will cost in the long run, considering factors such as inflation, uniforms, and extra-mural activities.
• Seek financial advice on what would best suit your income and livelihood.
• Evaluate your investment every year in case of unforeseen circumstances.
• Don’t wait for the perfect moment to start saving – start saving as soon as you can!
• Also while the best time to start saving is when a child is born, the second-best time to start is today.

‘Best time to start saving for your child is today’

If parents start to invest in tertiary education when their child is born, they’ll have at least six years for their investment to grow before their child can even start formal schooling, according to the integrated financial services provider.

“What I usually do for my clients on the birth of their children, I open an investment account for their children, and then let’s say for Christmas or birthdays they can put money into that investment account,” said Fouche.

“At the moment that’s the most efficient way to save for your children’s education.”

OFM News/Zenande Mpame dg