How to balance long-term vs short-term savings for your child’s education

With the rising cost of education in the next couple of years, having a solid education savings plan in place has become increasingly important.


While it is essential that parents start saving as early as possible, they must understand that it won’t help to put all your savings into one lump sum and hope for the best. Parents need to diversify their savings in both long-term and short-term saving vehicles.

Plan for the short and long-term

“A short-term investment vehicle like a savings account or a stokvel will ensure you can cover the basics your child will need, like school fees, stationery, uniforms, extra mural activities, etc. While a long-term investment vehicle like one of Old Mutual’s education plans, will allow you to pay for your child’s tertiary fees,” says John Manyike, head of Financial Education at Old Mutual.

Financial planning

Financial plans are not only for the wealthy. Everyone should have one. They serve as your masterplan to financial wellbeing. There are various educational policies and savings plans to choose from. It’s best to seek out a credible financial adviser from an accredited financial institution to assist you with drawing up a proper financial plan.

“Once you’ve made the commitment to save for your child’s education, and take the first steps to make it a reality, you’ll enjoy the peace of mind that comes with knowing you’ve made a good decision that will serve your family well over the long-term,” says Manyike.

Learn more

To find out how Old Mutual can help you ensure your child’s future education and other financial tips, please join the Old Mutual online community by liking the ‘On the Money’ financial education programme on Facebook or follow the twitter handle @om_onthemoney. You can also arrange a free financial education workshop for your community group or colleagues by emailing your request to

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