By: Bala Nonkonyana, CFP®
From the moment your child is born, as a parent you want the best for them. You want to be there for them every step of the way. Every milestone filled with pure emotion. The first day you brought home, to teary goodbyes on their first day of school, to proud tears at their graduation and happy tears as you walk them down the aisle.
What the beautifully captured, filtered and captioned social media photos don’t show are the costs involved behind the scenes of those moments.
As a parent, one of the greatest gifts you can give your child is access to a good education. Their ability to learn and retain knowledge, in an increasingly competitive world, can ultimately give them the foundation they need to build a life of their own, and even beyond that, a successful one.
What are the costs associated with ensuring a quality education for your children in South Africa?
• According to the school’s websites the yearly fees for public schools for 2019 is
• The national pass rate for the 2018 NSC (National Senior Certificate) stands at 78.2% with 28.7% students eligible to attend university.
• According to the Department of Basic Education, as of March 2018, the national average LER (Learner-Educator Ratio) for government primary schools was one teacher to every 35.2 students.
With the persistent perception that the quality of South Africa’s education is in perpetual decline, many parents feel that the only way to secure a future for their children is to turn to private education.
• For private schools you are looking at paying anything from R93 280 to the most expensive being R276 560, per annum.
• The pass rate for 2018 for the IEB (Independent Examination Board) stands at 98.9%, with 90.65% students eligible to attend university.
• According to a survey conducted by BusinessTech, the average class size in private schools is one teacher and an assistant to 25 students.
With the costs associated with both public and private schooling, financial planning and preparation are crucial. It is becoming increasingly important to invest and invest early for your children’s education.
Life is unpredictable, one thing that is certain however, is it’s not forever and we all eventually face death.
In the unfortunate event that you pass before you can provide for your kids how do you secure their future?
• Who will they stay with,
• Who will be paying for their education?
As a Certified Financial Planner, I have first-hand experience of parents who didn’t create a financial plan and security for their children. This is particularly alarming, given the economic standing of our country and the statistical need for quality education.
The foundation of any Financial Plan is a Will. You MUST draft a will for your children to ensure your assets are distributed to them according to your wishes as well as protected for them through a Testamentary Trust.
Now, what happens to their education if you pass before you have saved enough?
Many insurance companies offer a benefit which gets less attention than it truly deserves. The EDUCATOR Benefit is provided under an insurance policy and though many may vary the benefits offered range from;
• paying for tuition,
• international studies,
• additional expenses and
• achievement bonuses.
Morebo was borne out of the desire to help South Africans Live a Legacy for their descendants and what better legacy is there than securing an education for your children?
Speak to us about adding the Educator Benefit to your portfolio and investment options for your bundle of joy’s education.