Give your child the best education you can afford – here’s how to invest

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Kabous le Roux

162 days ago
Give your child the best education you can afford – here’s how to invest © stockbroker/123rf.com



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In hyper-unequal South Africa, the difference between living a good life and poverty often comes down to education.

Parents know this, and heart-breaking stories abound of sacrifices they make to afford a good education for their children.

The Money Show’s Bruce Whitfield asked personal finance advisor Warren Ingram (Galileo Capital) what the best ways are to fund an education.



RELATED: By 2025, a good public school will probably cost about R50 000 per year



In the tiniest of nutshells:

  • Saving up is always better than using debt.

  • The earlier you start the better.

  • The asset allocation (i.e. share vs property vs bonds vs cash) depends on how long you have left to invest. The longer you have; the more you can opt for potentially more lucrative (though volatile over short terms) investment such as shares.

  • Open a tax-free savings account in your child’s name. The growth is tax-free.

  • Consider asking that grandparents contribute to school fees.

For more detail, listen to the interview in the audio below.

This article first appeared on CapeTalk : Give your child the best education you can afford – here’s how to invest

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