As December rolls around, many parents get to breathe a momentary sigh of relief that a monthly school fee payment won’t be going off this month. That is until you remember that you’ll be expected to re-start payments again in January and this time it will come with new text books, school stationery, uniforms and for the bigger “kids”, you might even be paying boarding school or accommodation fees.
Let’s face it – children are expensive and the team from OUTvest have calculated that the cost of education is likely to rise by between 7 and 11% per year as education inflation outstrips other categories.
OUTvest is a South African robo-advisor which allows parents to save for their child’s education using innovative technology to invest at the lowest possible costs while having sophisticated algorithms select the most appropriate savings products for you. They have developed an innovative Education Calculator to help parents work out what their child’s education is likely to cost and how they will need to save for them.
“Most South African parents prioritise paying for their children’s education and yet many don’t have a plan for how they are going to save,” says OUTvest CEO Grant Locke. He adds: “Education goes beyond simply paying the schooling or course fees, when we built our calculator we had to add in elements such as stationery, accommodation or boarding fees, books and aftercare.”
Once you factor in education inflation, most parents are not setting aside enough to ensure they can provide the best quality education for their children.
A robo-advisor is a perfect way for parents to start saving for their children’s education. You don’t need any financial knowledge to make high-quality investment decisions, you get to track the progress on your mobile phone or computer and you’re paying some of the lowest fees in the industry – meaning every Rand you save is being put to work for your children.
On top of this, OUTvest offers its popular “Crowdvest” functionality which allows friends and family to make contributions toward your Education savings goal.
Locke concludes: “Education for your children is one of the single biggest investments you will make as a parent. By empowering parents to reach these savings goals, OUTvest is helping build futures for thousands of young South Africans.