Research from Solidarity Research Institute revealed in its 2012 report that only 39.1% of the South African population have a matric or some form of tertiary education. Further, it is shown that matriculants are at no real advantage over learners who left school with a lower grade. Of relevance is that some form of tertiary qualification provides significant advantage for job seekers.
"A solid foundation in education at school level leading up to matric is critical to learners to allow them to enter into the tertiary education system," says Field.
"Of real concern is those for whom the costs of staying in school are beyond reach. Children who have lost one or both of their parents, and are in the care of family or the state are often faced with the prospect of entering into part- or even full-time employment before they reach matric level. These circumstances hinder their ability to work their way out of a cycle of poverty," he says.
Field says that even in instances where parents have insured against the unforeseen, lack of financial literacy of guardians or mismanagement of funds frequently results in children not being in a position to utilise funds for their long-term benefit through education.
"There is an enormous onus of trust placed in the hands of insurers when parents invest in their children's wellbeing in the event of their death. Financial institutions must take responsibility for providing holistic solutions that will guarantee the financial sustainability of minors beyond mere day-to-day costs."
Field says that with the correct guidance from a financial institution, many children, whose schooling and additional needs have been met through the judicious utilisation of funds, often recognise the value of using the remaining funds to kick-start tertiary studies.
It is critical, he continues, that investments are made with institutions that not only safeguard and grow the funds, but that also consider the minor's future.
"In 2013, FedGroup paid out in excess of R12 million for educational related expenses alone. Coupled with prioritising education for our minor beneficiaries, the Group endeavours to maximise the investment made by parents by securing their children's futures as far as possible - this includes offering minors financial advice on their wisest future path. We strongly believe that investing in further education provides our beneficiaries with the tools to make a meaningful economic and social impact on their communities.
"Parents and guardians who are aware of costs associated with raising children and make provisions for the unforeseen need to carefully evaluate options available," says Field.
