How to ensure your child's education remains stable in challenging economic times

Raising children in today’s economic climate presents an array of challenges, especially as the cost of living continues to skyrocket. Factors such as rising prices for groceries and school supplies make it increasingly difficult for families to keep up, let alone plan for their child's educational needs. Despite steady interest rates, many households feel the pressure, particularly as they strive to provide a stable learning environment.

Arno Jansen van Vuuren, Managing Director at Futurewise, emphasises the importance of education amidst these trying times. “We all want to give our children the best possible start in life. However, with public education resources under pressure and the increasing costs of learning, a novel approach to education planning is crucial,” he states.

Short-term relief, long-term challenges

Recent government decisions, such as the scrapping of a proposed VAT increase, brought immediate relief to many parents. In an economy where every cent counts, avoiding further hikes has felt like a victory. Yet, this short-term solution comes at a longer-term cost. With less tax revenue, tighter government budgets mean that education will endure even more strain.

Reports suggest that thousands of teachers, faced with disillusionment and burnout, are expected to leave the public school system in the next two years. As classrooms grow more crowded and experienced educators exit, the quality of education is anticipated to decline, placing additional responsibilities and financial burdens on parents.

Understanding the true cost of education

Parents are acutely aware that the financial demands of education extend far beyond school fees. Costs accumulate in various ways: transport, digital learning devices, school uniforms, sports kits, and aftercare services all add up. Each year, these expenses rise, often outpacing salary increases, while families are frequently faced with supporting extended members such as grandparents and siblings due to high youth unemployment rates.

Despite these challenges, many parents aspire to provide their children with a private education or the prospect of university. However, the inflationary pressures on these dreams are substantial. Gone are the days when setting aside small amounts for education seemed adequate; today’s landscape requires a robust financial strategy to navigate the uncertainties of the future.

Preparing for the educational future

So, how can parents inflation-proof their child’s future education? The answer lies in strategic planning that anticipates financial fluctuations over the longer term. Jansen van Vuuren highlights education insurance as a vital tool, stating that Futurewise has policies designed to grow them in line with inflation, ensuring that coverage remains relevant as educational fees rise.

Moreover, policyholders gain access to the Learning Hub — a comprehensive online resource platform offering academic support and tools from leading partners like TopDog Education, valued up to R8,000, which aim to assist children throughout their schooling journey.

In addition to coverage, Futurewise offers a flexible savings component, in partnership with Nedbank, allowing families to invest for their educational goals while having the liquidity to withdraw when necessary, ensuring financial stability while pursuing quality education.

Long-term educational investment

While the temptation may be to focus on immediate financial pressures, education is fundamentally a long-term investment. The decisions made today regarding how to plan, save, and protect your child's educational future will significantly impact their opportunities in the years to come.

Despite the uncontrollable nature of the economy, parents can take control of their educational strategies. With the right tools, conscientious planning, and dedicated support, it is possible to transform uncertainties into opportunities — paving the way for children to achieve the bright futures they deserve.

IOL