How should I save for my child’s future?

Wednesday | 08 April | 2020

As a parent, many responsibilities rest on our shoulders, and some of the responsibilities include to ensure that our children are provided with the best possible opportunities to pursue their dreams. This brings us to three important questions every parent should ask and answer as early as possible:

1. How much should I save for my child’s future?

This will depend on how old the children are and what the goal of the investment is. For example, if the investment is opened to provide for a tertiary qualification and the child is still young, we have time on our side.

2. Where should I save my money?

The starting point is to determine which investment vehicles are available. The investment vehicle must be sustainable and flexible should your financial circumstances change over time.

3. What will happen if I am no longer there to save?

This is something we never want to think about, but it is a reality we must keep in mind.

The first step would be to look at your investment vehicle and determine whether it has a life insurance component attached to it that will continue to fund the product. If not, you should revise your life insurance portfolio to address this need. You should also make sure you have a valid, updated will that summarises the planning should the worst happen.

Finally, it is important to give wings to our children’s dreams, and with just a little planning the opportunity can be created. So, start saving as early as possible and set your goals.

 

Solidarity, through Solidarity Financial Services (FSP 15556), provides independent advice for needs such as retirement planning, income protection and estate planning.

For more information, send an email to advies@sfdienste.co.za

 

* All information was correct at the time of publication.