Jul 26
Saving for higher education

ss.jpgAs a rule of thumb, saving as soon as possible is the best approach when looking to save for tertiary education. The best time for education planning is around the time your child is born. This offers you several years to put money away in an education fund for example. If this is now impossible, the second best option is to start saving today. Don't let the amount scare you. Focus on saving as much as you can on a regular basis.

Education inflation (currently at 9%) realistically means that you will need a substantial amount to save for education. You should rather aim to invest your money where you can get good returns. Remember the more time you have to invest your money, the more time it has to grow.


Taking the time to plan is the first step. If your child has already started their schooling, do not be disheartened. Investing can still alleviate the burden down the line.  If this is the case then perhaps you can look at investing for later education (high school and tertiary) and pay for the early years from your salary.

REMEMBER: When you invest, the returns you earn lessen the total financial impact of school fees on your budget.

Be a disciplined saver

When you are serious about your savings, you also get the added advantage of sending your child/children to schools you may otherwise not be able to afford.

Avoid credit if you can

The result of not planning may be that you are forced to take up a loan to finance your child's education. Compound works against you in this case, as credit becomes the most expensive option.

Research which investment option is best

There are numerous investment products available to choose from. Some specialised education polices or unit trusts. Make sure you choose the option that suits your needs.

Like all major decisions, there are various facts to consider such as

  • What does your budget allow?
  • Can you save/invest regularly, or do you have a once-off lump sum?
  • Do you understand the different solutions available to you?
  • What guidance do you need to choose the right savings and investments solution for you?
  • What kind of return are you looking for, and what level of risk are you willing to take on your capital investment?
  • How long do you want to save and invest for?

About IIE Rosebank College
The IIE Rosebank College is dedicated to providing students with a solid foundation, creating future thinkers to build successful careers.
Rosebank College is an educational brand of The Independent Institute of Education (The IIE) which is registered with the Department of 
Higher Education and Training as a private higher education institution. The IIE quality, accredited courses enable you to thrive in today's 
working world.
Whether you study at our Braamfontein, Bloemfontein, Pietermaritzburg, Pretoria CBD, Pretoria Sunnyside, Polokwane or Durban campuses,
and enrol for an IIE degree, diploma or higher certificate.  
We are a worthy higher education partner for all students who entrust us with their career development.
For more information please visit www.rosebankcollege.co.za
 match your savings and investment objectives and time horizon.