A CEO’S LEGACY OF UNCERTAINTY

James, a highly successful CEO in Nairobi, was known for his impressive portfolio of assets—multiple properties, hefty savings in various SACCOS, and millions in the bank. Confident in his financial acumen, he believed his substantial wealth would be enough to cover the education costs for his six children. He had always thought that education policies were unnecessary, especially with his financial investments providing a reliable source of funds.

“I have enough assets to cover their school fees,” he often reassured his family. But when fate intervened and James passed away unexpectedly, the reality of his financial planning—or lack thereof—was laid bare. His family was left in turmoil, and his children’s future became uncertain.

Family Wrangles and Unforeseen Consequences

James had two wives and three children from each union, and the lack of a clear, legally binding education plan set the stage for family discord. Upon his passing, the family descended into chaos, fighting over James’ estate. His assets, which were meant to provide security for his children, were now part of an inheritance battle. His brother, who took charge of the estate, made the decision to sell off many of the properties to pay for immediate expenses, leaving nothing for the children’s education.

The eldest son of James’ first wife, who had been excelling in school and was ready to attend university, had to drop out and assume the role of head of the household. With his mother and siblings now dependent on him, he couldn’t afford to continue his education. He sought work wherever he could, hoping to make ends meet for his family.

Meanwhile, James’ other children, who were also in school, had to rely on external resources, like bursaries and scholarships, just to continue their education. The financial uncertainty left a lasting impact on their lives, and what was supposed to be a smooth educational journey was marred by hardship.

Why Education Policies Are Crucial, Even When You Have Other Investments

James’ tragic story serves as a powerful reminder that relying on SACCOS, properties, and savings accounts alone is not enough to secure your children’s education. While these assets can provide a strong financial foundation, they do not guarantee the specific, dedicated funds required for education at various levels.

Education policies, unlike other investments, are designed specifically to secure the future of your child’s education. These policies grow over time, are structured to outpace inflation, and ensure that funds are available for schooling when they are most needed—regardless of what happens to your other financial assets. Even if your bank account is overflowing or your properties appreciate in value, without an education policy, you are leaving your children’s future at risk.

How Much Is Enough to Save for Your Children’s Education?

Many parents wonder how much they should save for their children’s education. In Kenya, education costs have been rising steadily. For instance, primary school fees can range from KES 30,000 to KES 80,000 annually in private schools, while secondary school tuition can cost anywhere from KES 50,000 to KES 200,000. University fees at local institutions can easily exceed KES 300,000 per year, and the total cost of a university degree could easily surpass KES 4 million, especially if your child attends a private or international school.

To cover these expenses, starting early is key. Ideally, you should begin saving as soon as your child is born. The earlier you start, the lower your monthly contributions will be, thanks to the power of compound interest. For example, if you start saving for your child’s education at birth, you may only need to contribute KES 10,000 to KES 30,000 monthly, depending on the policy and your child’s future education needs.

While the exact amount depends on your child’s educational aspirations and chosen institutions, it’s safe to aim for at least KES 3 million to KES 5 million for university education. Setting up an education policy early ensures that your child’s schooling costs will be covered, without worry or compromise.

Is an Education Policy a Will?

It’s important to note that an education policy is not a will. While a will outlines how your assets will be distributed upon your death, it doesn’t guarantee that funds for education will be readily available when needed.

An education policy, on the other hand, is a dedicated financial tool that specifically ensures that your child’s education is funded, no matter what happens to your estate. Even if your assets are tied up in probate or your wealth is contested, an education policy is a separate, reliable source of funding that will cover schooling expenses directly.

While a will can help distribute assets according to your wishes, it is the education policy that will ensure those assets are used specifically for education when the time comes.

The Importance of Early Financial Planning: A Lesson from James’ Story

James’ story is a painful reminder of why it’s so critical to plan ahead for your children’s education. No matter how substantial your wealth is, relying solely on properties, savings, or SACCOS can leave your family vulnerable in the event of your passing.

Education policies offer the certainty, peace of mind, and protection your children need to continue their education without the interruption caused by unforeseen circumstances. By investing in an education policy, you guarantee that your children’s future is secure, regardless of what happens to the rest of your assets.

At Tamara’s Financial Planning and Consultancy, we understand the importance of long-term planning and are committed to helping you navigate the process of securing your child’s education. With expert guidance, we will help you choose the best education policies that align with your financial goals and give your children the opportunity to succeed academically, without compromise.

Secure Your Child’s Future Today

Imagine a future where your child’s university fees are paid for, and all they have to focus on is excelling in their studies. Let us help you make that future a reality. Contact Tamara’s Financial Planning and Consultancy today and start planning for your child’s education with the right education policy. It’s never too early to start, and together, we can make sure that your children’s education is protected, no matter what.

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