5 Facts about cost of education

by | Apr 26, 2018 | Personal Insurance

Why you seriously should have education insurance, considering the cost of education

Cost of Education“An investment in knowledge pays the best interest.”    Benjamin Franklin

Indeed, education is arguably one of the most profitable investments one can make. However, this is expensive stock to obtain if you consider the cost of education in the facts below:

Education is this expensive… 

An average South African family needs to spend approximately R5 million (R2.2 million per child) on quality education for their children – from early learning all the way through tertiary education. Excellent education is fundamental to a successful future, but it unfortunately comes at a great cost.

Additional educational necessities add this much to the cost…

Supplementary expenses related to education could add 50% to the total cost. These auxiliary expenses cover resources such as extra tutoring, laptops, sports equipment and other similar assets that children require to reach their full potential and compete with their peers on equal grounds.

Costs are rising this much faster than your pay check…

Over the past few years tuition fees have annually increased 2-4% more than salary inflation. If this trend continues, you will be spending more than four times as much on education as you do today, less than 20 years down the line.

You need to be saving this much

Realistically, parents need so save R5 722 monthly from birth for an average child’s educational career.

Younger learners, older parents…

To complicate matters even further, children globally are starting school one year earlier than a decade ago. This increases the necessary monthly savings with up to 20%. Moreover, couples are having children at an older age as in previous years, which implies that many parents will be entering retirement while still having children dependent on them for educational payments. If they do not wish to work for more years, they will need to be putting away more funds from the beginning.

So what should we do to ensure our children’s futures are covered?

Cost of EducationThe need so save up for schooling is something most parents take seriously. But how about protecting your child’s education from threats such as parental death or incapacity? If, for some or other reason, you will not be able to provide anymore, will your child still have the privilege to enjoy the quality education you wish for them to obtain?

Think about it.

Education insurance is a great solution to this dilemma. A basic monthly premium can guarantee that your child will receive quality education –up to tertiary level –if circumstances render you unable to provide due to unforeseen circumstances. Moreover, many policies have pay-out benefits even if you do not claim!

We insure most of our valuable possessions –why not also education? It is after all one of the most worthy assets one could possibly possess. Any broker worth their salt should introduce the option of education insurance to responsible parents.

Are your kids covered? Talk to us at Status Insurance Brokers about your options for education insurance.

Source: Advertising Supplement to the Mail & Guardian, 26 January – 1 February 2018


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