Education = Future If you think education is expensive, try ignorance.

Presented by Dieter SauerbierA Liberty Life Financial Advisor

Disclaimer

The information and examples in this presentation are for demonstration purposes only, and should not be considered as advice.

You are encouraged to discuss any financial planning requirements with your financial adviser.

Luckily for you, the gentleman currently presenting is qualified to give advice, so please set up an appointment after the show.

Why are we here?

Recently the South African government calculated that the cost of raising a child from birth to 18 years of age could reach R 1 681 470

They also dropped the maths pass rate to 20%

• How did they get to that number?• What are the major expenses?• How do I plan to save?• What if I'm no longer around to

support my child?

Let me show you

Today I’d like to focus on the cost of education.

How some things have changed

In the beginning

At this stage you would have done some pre-planning.

• Furnishing the nursery = R 7 000• Feeding equipment and accessories = R 5 500• Clothing & nappies = R 3 000• Bathing supplies = R 2 500• Baby proofing the house = R 1 500• Travel Gear = R 5 500

Total set up cost = R 25 000

Pre-School

Stay at home parenting or child care?

• Day care or Crèche, expect to pay between R 1450 and R 3600 per month

• Nannies (who don’t live in) cost between R 4000 to R 6000 per month

Quick lesson on inflation • Current inflation rate is roughly 6%, but what does that

mean?

Primary School2017 School fees

Edgemead Primary school R 13 280

Curro Century Citywith out day careR 30 000

Camps Bay PrepR 39 324

Reddam House PrepR 75 480

Western Province Prep grades 0 -2 R 49 645.R 80 770

Education inflation

Average over the period is 9.18%

Primary school fees

Age attained Year

Edgemead2017 school

fees R 13 280

Curro 2017 school fees at R 30 000

Reddam 2017 School fees at

R 75 480

7 2023 R 24 590 R 50 320 R 126 590

8 2024 R 26 860 R 54 850 R 137 990

9 2025 R 29 330 R 59 780 R 150 400

10 2026 R 32 030 R 65 160 R 163 940

11 2027 R 34 970 R 71 030 R 178 690

12 2028 R 38 190 R 77 420 R 194 780

13 2029 R 41 700 R 84 380 R 212 300

Inflation 9.2%

Total cost for primary school over 7 years

Curro = R 462 940Reddam = R 1 164 690

Edgemead = R 227 670

So how do you do it?

• You need to start planning now!• Set your goals.• Determine what you can afford.• The important thing is that you start somewhere.

• With all the additional expenses• Sleep deprivation, Lack of time, possibly not at the top of

you game• Its easy to put this off until tomorrow.

Illustration is based on R1000 per month

5% increase per annum

With an 8% return year on year

Total Saving R 129 251

Total invested R 97 704

Total Interest R 31 547

High School2017 School fees

Edgemead High R 18 520

Wynberg Boys HighR 40 000

Rondebosch Boys HighR 41 400

BishopsR 96 360

Herschel Girls SchoolR 94 780

High school fees

Ageattained

Year

Edgemead2017 School

feesR 18 520

Rondebosch 2017 school

fees R 41 400

Bishops 2017 school fees R 96 360

14 2030 R 63 500 R 126 930 R 295 430

15 2031 R 69 340 R 138 350 R 322 010

16 2032 R 75 720 R 150 800 R 350 990

17 2033 R 82 690 R 164 380 R 382 580

18 2034 R 90 300 R 179 170 R 417 020

Inflation 9.2%

Total cost for high school over 5 years Rondebosch = R 759 630

Bishops = R 1 768 030

Edgemead = R 381 550

Illustration is based on R1000 per month

5% increase per annum

With an 8% return year on year

Total Saving R 407 725

Total invested R 235 183

Total Interest R 172 542

University

# Fees must fall! – But will they?

What are the chances ?

UCT fees 2015

University fees

Age attained YearBcom

In 2017 R 62 500

BscEngeneering

In 2017R 53 000

19 2035 R 332 750 R 282 170

20 2036 R 363 360 R 308 130

21 2037 R 396 790 R 336 480

22 2038 R 433 290 R 367 430

Inflation 9.2%

Total cost for University over 4 years

Bcom = R 1 526 190

Bsc = R 1 294 210

Summary of Education costs

Primary SchoolFrom To Edgemead Reddam

2023 2029 R 227 670 R 1 164 690

From To Edgemead High Bishops

2030 2034 R 381 550 R 1 768 030High School

From To Bcom Bsc

2035 2038 R 1 526 190 R 1 294 210University

TotalOption B R 4 226 930

Option A R 2 135 410

Option A Option B

Illustration is based on R1000 per month

5% increase per annum

With an 8% return year on year

Total Saving R 768 040

Total invested R 364 061

Total Interest R 396 486

So where to from here?

• Consider the best savings product based on your circumstances

• Build your life long plan

• Don’t panic!

Savings options

• Savings Account• Unit Trust/Collective investment• Tax free Saving• Endowment

“Peace of mind is attained not by ignoring problems, but by solving them”

- Raymond Hull

Thank you.