The Ministry of Education recently announced in their budget vote that the N$500 subsidy for secondary schools would be reduced to N$250 per learner in the 2017/18 financial year.
With government budgetary cuts now affecting secondary schools, parents will need to tighten their belts even further to ensure their children receive a good education. The Education Ministry further indicated that at primary school level, where the ministry previously allocated N$350 per learner, only N$250 would be spent per learner through the new budget.
“These cuts will inevitably be passed on to parents, who will have to increase this specific budgetary item in their household budget,” said Riaan van Rooyen, head of corporate communications, strategy and sustainability at Bank Windhoek.
“Parents will have to look at cutting expenses at home, as well as in their daily lives to accommodate the subsidy cuts. To identify these cuts it is important to focus on necessities. Think about that lunch and coffee you buy at work. Could you not perhaps save by bringing your coffee and lunch to work? Also preparing lunch or snacks for children going to school, instead of giving them money to buy from their tuck-shop.”
“Another solution to save for your child’s future and ensure they get the best education would be to open a savings account especially for that purpose.” Bank Windhoek offers various savings products especially tailored to create a savings culture.
“Our Solo account for young people under the age of 18 years is an ideal way to teach your child early on how to start managing their own finances. It offers no monthly service fees, no ATM withdrawal fees at Bank Windhoek ATMs, access to Cellphone banking, our Mobile App and Internet Banking. Debit orders and stop orders can be linked to the Solo account unlimited withdrawals.”
Van Rooyen further said: “Not sure how much you can afford to save? Start small – maybe just putting your change each week into a jar. If that works, try setting aside a bit more on a regular basis. Be realistic – it’s better to commit to a smaller sum you’re confident you can manage than a bigger amount that you give up on.”
If there is one thing we can expect, it is the unexpected, so better to start saving now than wait for the unexpected to happen,” Van Rooyen advised.