Do you have a clear savings strategy in place for your child’s education? You may be surprised to learn that those who do are in the minority…
Many parents around South Africa want to provide the best education for their children, but family finances are becoming increasingly strained by the rising costs of education. Even though education inflation is higher than South Africa’s Consumer Price Index (CPI), 54% of urban South Africans are not actively saving for their children’s education, according to the 2016 Old Mutual Savings and Investment Monitor.
If you’re not saving right now, can you afford to provide for your children’s education now and into the future?
The inflation equation
Figures from Stats SA show that since 1990, inflation for day-to-day living expenses has increased by about 7% each year. Sounds like a lot, doesn’t it? Take a deep breath… because education costs have risen by almost double this amount – an alarming 13% per year.
Let’s look at a practical example – if your household earned R10 000 a month in 1990 and your child’s education cost you R500 per month, 5% of your income would go towards education. If your income increased in line with inflation, you would be earning around R44 000 today. However, the cost of providing the same education for your child would have increased to R8 103 per month, a massive 18% of your income – over triple the proportion from 28 years ago.
The School-Days solution
The stats may sound scary, but there’s action you can take today to provide for tomorrow. School-Days is revolutionising the way South Africans meet their school fee obligations. Just by doing their everyday shopping, School-Days members accumulate rebates from retail partners that go directly into their personal bursary.
Take the future of your children’s education into your own hands. Join School-Days today: https://www.schooldays.co.za/#join-today.