School fees without the September panic

A simple three bucket plan for parents, from nursery to university, with worked naira examples.

Bucket one: this year's fees

Keep the next three terms of fees in the Money Market Fund. It is steady, and withdrawals reach your account in one working day, in time for the bursar.

Bucket two: the next five years

Fees for years two to five belong in the Fixed Income Fund, which has historically paid more than the money market for a little more movement.

Bucket three: university

For fees more than five years away, the Balanced or Equity funds have more time to grow. Move money down to bucket two as each year comes closer.

A worked example

A parent with two children in primary school, fees of ₦1.2m a term each, might keep ₦7.2m in bucket one, add ₦250,000 a month to bucket two and ₦100,000 a month to bucket three. Example figures only.

Review every January

Check fee increases, move money between buckets and raise monthly amounts with your salary.

Example rates and figures for this demo. The value of investments can fall as well as rise, past performance is not a guide to the future and returns are not promised. This is general commentary, not personal advice.

In short

Bucket one: this year's fees
Bucket two: the next five years
Bucket three: university
A worked example
Review every January

Questions

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Put the idea to work

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