Starting a family is a big step, with its own set of responsibilities and rewards. But while you’re picking out a name, planning the colour of the nursery, and working out who is on nappy duty, you should also start thinking about an education plan for the latest addition to your family.

You don’t know what your child will want to be when they grow up, but you do know that the economy just keeps getting tougher. Over the next 18 to 20 years, the cost of education is bound to increase, so the earlier you start saving, the easier it will be to give your child the best possible start in their chosen career.

But what if my child doesn’t want to study further?

Tertiary education does open doors for the future, but it isn’t the only key to a successful career. Your child may not want to study further after high school, and that’s okay. In fact, there are many successful entrepreneurs who have made their mark without following traditional study routes.

However, that doesn’t mean that investments for their future won’t come in handy. If they don’t use it to study further, it could serve as seed money to kick-start a new business, as a downpayment for their first home or investment property, or even as an early start to their retirement fund. Whichever path they follow, they’ll be grateful for your foresight when the time comes.

Save for your child’s success

You can make a big difference by budgeting and saving with intention.

• Begin by tracking your monthly income and expenses and set aside a dedicated amount just for education.
• Differentiate between needs and wants, cut unnecessary spending, and review your budget regularly to stay on track.
• The sooner you start saving, the more you’ll benefit from compound interest.
• Even small monthly deposits add up over time, especially if they’re in tax-efficient financial vehicles like a tax-free investment account or education policies.
• Ask family members to contribute to these accounts for birthdays or holidays as thoughtful gifts.
• Consider bursaries and scholarships to help cover costs.
• If you’re also juggling your own education expenses, consider employer study bursaries or scholarships through your chosen institutions. 
• If finances are tight, making tough adjustments – like downsizing, or temporarily postponing luxuries – can free up resources for your child’s education.

Long-term savings options from Nedgroup Investments

Long-term savings benefit from the magic of compound interest, so the earlier you start, the more you’ll earn. Here are some long-term savings options from Nedgroup Investments to consider:

• Unit trusts
  A unit trust gives you the opportunity to invest for your goals while having easy access to your money. It’s ideal for investors across all risk profiles, and offers diversity across multiple investments in a single unit trust, including international investments. Start growing your wealth today – you can open and manage your unit trust on our secure, easy-to-use digital investment platform.

• Tax-free investments
  The Nedgroup Investments Tax-free Investments account offers a simple, effective way to save while not paying tax on interest, dividends, or capital gains. You can start by contributing as little as R250 a month and save up to R36,000 a year tax-free, with a lifetime cap of R500,000. You’ll get real-time SMS alerts for every transaction and the option to reinvest interest for more growth.

• Electronic 32Day Notice Account
  Our Electronic 32Day Notice Account offers a secure, flexible way to grow your money. Start with R250, pay zero monthly fees, and earn between 6.70% and 8.55% interest as your balance grows. When you need access to your funds, just give us 32 days' notice, or keep topping up whenever you like to build up your savings even faster. Plus, you can add your Greenbacks to boost your savings even more.

• JustInvest
  The JustInvest account is a great choice if you’re looking for flexibility in your investments. Start with as little as R500 and earn up to 8.50% interest for the first 3 months. Your money grows daily, and you can top up anytime with deposits as low as R100, so you can increase the amount of interest you’re earning often. Plus, you can withdraw money with 24 hours’ notice. There are no monthly fees, and conveniently, you can manage everything on the Money app.

Opening and managing an account is easy on the Money app, and if you need help, our chatbot, Enbi, is available 24/7. #AskEnbiFirst

Ultimately, a financial plan will help you take control and focus on your long-term goals, including your child’s education. For more guidance on how to secure the future of your child, contact us today. Our financial experts can help you set up an education savings plan that fits your family’s needs and gives you peace of mind for the future