QUIZ
life
Are you saving enough for your child’s future? Tertiary studies can unlock opportunities for your child to succeed, but a good education isn’t cheap. Are you prepared for the costs? 1. The way things are, my child will probably…
4. What savings goals have you set for your child’s future?
A Finish school and work to pay for studies. B Work and hopefully move up the ranks. C Have the freedom of choice to study after school.
A We don’t have a goal – I’m just saving whatever I can. B We haven’t set a goal beyond their matric. C We’ve set a figure, and prioritise that over impulse spending.
2. We’ve been saving for our child’s studies since… A … they began high school. B Never. C … they were born.
A Tough decision. Those savings
3. If you can afford studies for your child, how long will the savings last?
Text: Dominique Bowen; Photography: Shutterstock
5. You’ve spotted a deal on a flat-screen TV. What do you do? are tempting…. B Deals don’t come along every day! C Deals come and go. My child’s education is more important.
A Probably the first year or two. B We will have to rely on a loan if we
6. What are you using to save for your child’s education?
don’t get a bursary. C We have enough saved for three years of study.
A We’re saving with a normal bank account. B Nothing at the moment. C We have a monthly debit order to a unit trust.
Answers*: MOSTLY As: You have the right idea, but consistently saving will be more rewarding. “Make savings a compulsory deduction,” suggests André Wethmar, a senior financial planner at FinPrufeWealth BlueStar, underwritten by Sanlam.
MOSTLY Bs: Not saving, or not saving enough, could mean you or your child will be saddled with debt. “Pitfalls of not saving include high interest on student loans, and the liability on your child when they start their career to repay debt,” says Wethmar.
MOSTLY Cs: It seems you are on track to securing a bright future for your child. Keep it up! To optimise your savings, Wethmar suggests reviewing your strategy with a financial planner annually.
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TIPS FOR PREPARING FOR YOUR CHILD’S EDUCATION + START SAVING EARLY
The sooner you start, the more savings you can build for your child’s future. “Every month, a small amount with compound interest can get you to the finish line,” says Wethmar. Use our savings calculator to work out how much to put away: sanlamreality.co.za/wealthsense/savings-calculator/
+ PLAN WELL A financial planner will be able to help you decide which savings vehicle to use to grow your child’s education fund. Book a meeting now: sanlamreality. co.za/contact-an-adviser/
+ DON’T BE TEMPTED
*This quiz is not intended to replace the advice of an expert, a professional financial planner or a debt counsellor.
“Don’t withdraw money for other expenses during the savings journey,” says Wethmar. This can set you back on reaching your goals.
sanlamreality.co.za
Summer 2021/2022
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