Tips and tricks for saving for your children’s tertiary education

Amid protests around increasing university fees despite financial exclusion, housing and student debt at universities in Cape Town, Johannesburg and the Eastern Cape, conversations around how parents can save for their kids' education are popping up.

UCT moves some classes online after protests over student debt, housing

An investment policy can help parents save if they make consistent monthly contributions.

Nicol says there are things to understand when saving for your kids' education:

1) Timeline: if you invest in your kids' tertiary education when they're toddlers or when they're born - will you have a lump sum available to withdraw when they're 18 years old?

2) What is the average annual cost of a university? Know what you're saving for. For example: know which tertiary institute your child will apply to and how long their studies are expected to take.

3) Investment return: Research the numbers. Your monthly contribution to the investment should be based on expected university costs, inflation rates, and annual education inflation by the time your child goes to university.

Nicol says the same formula can be applied to saving for kids' primary and high school fees.

"If you can start putting money aside for something like high school then at least there's one less thing to worry about at the time," explains Nicol.

Check if schools give discounts if you pay fees upfront. You might end up saving up to 5% on school fees every year.