Saving for varsity fees

IF YOUR child is doing Grade 10 next year and you know you will not have enough money to pay for his/her university fees there is a solution in the form of a product called Savings Plan.

Bongani Sithole, Liberty Life's head of entry-level markets, spoke to Sowetan about the plan.

"It was designed to help low earners invest small amounts for mid-term returns," he said.

The Savings Plan allows customers to contribute a monthly amount between R40 and R1000. The money is invested for a minimum period of three years.

"We take the money and invest it in shares or property on behalf of the customer and they get the returns," Sithole said.

"I can guarantee that the customer will not lose the money even if the markets are not lucrative at the time he or she claims the money," he said.

"It also has compound interest. The longer you contribute the bigger your returns.

"Maybe we should work hard at promoting this product to get people into the habit of saving. If everyone saved we would all be rich," he said.