Rising school and university costs are leaving many families anxious regarding funding the costs of their children’s education. But by understanding the rules of time and consistency, even financially stressed parents can build up the resources to secure a good education for their children

Household savings rates in South Africa are low and in a low-growth economy many people struggle to find cash to save for the future. But even modest, regular savings contributions can grow substantially with time.

Financial planners recommend three practical steps to build up an educational nest egg:

1. Start small but start early.
If you begin when your child is born, investing just R500 a month at a 10% annual return could grow to nearly R300 000 by their 18th birthday. Waiting until age ten would require more than triple that monthly amount to reach the same goal. Compound growth rewards consistency, not size, so start as early as possible.

2. Choose the right vehicle.
Tax-free savings accounts (TFSAs) allow annual contributions up to R36 000, with all growth sheltered from tax. For parents seeking predictable outcomes, fixed-interest accounts or government retail bonds can complement riskier assets like equities.

3. Match savings to milestones.
Primary and secondary school fees often rise faster than inflation, roughly 7% to 9% per year according to long-term data from Stats SA. Linking contributions to education-inflation or diverting annual bonuses or tax refunds into your fund, helps keep pace with the true cost curve.

Ultimately, saving for a child’s education is about persistence. A lean budget, a disciplined debit order, and an early start can turn anxiety into opportunity. As economic data show, households that save even a sliver of income cushion themselves against future shocks, and give their children the freedom of choice that a decent education brings.