Sophie has not thought about her children’s education. She feels bad that it is not on her list, but it is because education is expensive, and she has two children to pay for.
Themba agrees with her, education could be expensive – if you don’t plan for it. Let’s look at the costs involved in the table below:
| Year Child Enters School | High School Public (Five Years) | High School Private (Five Years) | University (Three Years) |
|---|---|---|---|
| 2016 | Z$169 000 | Z$675 800 | Z$249 500 |
| 2018 | Z$200 700 | Z$803 000 | Z$296 400 |
| 2020 | Z$238 000 | Z$954 000 | Z$352 000 |
| 2022 | Z$283 400 | Z$1 133 400 | Z$418 500 |
| 2024 | Z$336 700 | Z$1 346 600 | Z$497 200 |
| 2026 | Z$400 000 | Z$1 599 900 | Z$590 700 |
| 2028 | Z$475 200 | Z$1 900 900 | Z$701 800 |
| 2030 | Z$564 600 | Z$2 258 400 | Z$833 800 |
| 2032 | Z$670 800 | Z$2 683 300 | Z$990 700 |
Sophie shakes her head and says she cannot afford to send her children to school and still pay for their studies afterwards. Themba asks her to be patient, he hasn’t shown her how she can save for their education as well as her own.
One way she could save specifically for education is through an education savings plan Sophie starts to feel a bit better. Themba tells her that he will tell her about other savings vehicles when they discuss the Secret of the Lion, but it is first time to have a look at the Secret of the Elephant.