Let nothing stop your child’s big dream

According to the Old Mutual Savings and Investment monitor, half of working metropolitan South African parents agree that saving for their child’s education is more important than saving towards their own retirement. Yet only a small percentage of these p

A good education is something that can have a major impact on a child’s future. And the standard of education a child receives is often dependent on what their parents can afford.

“This is why it is vital for parents to start saving as soon as possible to benefit from compound growth,” says Jaco Gouws, Max Investments Product Manager at Old Mutual.

Things to consider include whether parents plan on sending their child to a private or public school. Over and above school fees, parents will need to budget for books, stationery, extra-murals etc, all of which can add up to a substantial amount.

And then of course, there’s the question of tertiary education. Will they go to a technikon or a university? And will parents be able to support their child’s education financially, helping them to turn their every dream into a reality?

“Research shows that only 40% of matriculants who enter the labour force after matric will find employment. This figure increases to 78% if a child is a university graduate. This is why the standard of education a child receives is so important.”

Protect you premiums

On top of the school fees and extra-murals, there is one more important thing parents need to take into account when it comes to preparing for their child’s future. “When you take out an investment, do you stop to think about what would happen if you could suddenly no longer cover the premiums, and what the impact of that would be? Especially if the investment was an education policy taken out for your child?” asks Gouws.

By adding premium protection against death and disability to your investment plans you will ensure that your child’s education savings needs will always be taken care of.

“With premium protection in place, you’ll have peace of mind knowing that we will pay the premiums for the balance of the policy term should you die or become disabled and unable to carry on working.”

For example. Sipho is five years old and already knows that he is going to be a top chef one day. Edna Khumalo, his mom, has started saving R500 per month so that in about 15 years’ time she will be able to afford to send him to a culinary academy for three years. Luckily for Sipho, he won’t have to give up his dream if his mom passes on or becomes disabled and unable to work. Because Mrs Khumalo received good advice from her financial adviser and took out premium protection against death and disability as part of her education savings.

“By thinking of the unthinkable and taking out premium protection, you can minimise the financial impact of your death or disability on your youngsters. It’s good to know that even if the unthinkable happens, you can still help your child’s dreams to become a reality,” says Gouws.