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<\/a>“I have noticed a trend where people are asking about funding solutions for offshore universities<\/strong>,” he said. <\/p>\n\n\n\n This is because parents want to ensure quality education and a prosperous future for their children. <\/p>\n\n\n\n Mostert illustrated their concerns by examining the performance of the rand-dollar exchange rate over the past 18 years and projecting it forward over the next 18 years (assuming your child was born in 2024). <\/p>\n\n\n\n He noted that the rand has weakened 5.9% annually over the last 18 years, meaning that if the same figures were to repeat, the rand\/dollar would be R51.57\/$ in 18 years.<\/p>\n\n\n\n This is dangerous if you’ve only invested in local assets while investing overseas could provide a win-win situation for parents.<\/p>\n\n\n\n “If the state of the country reaches levels where offshore universities are a necessity, you have already externalised funds over the 18 years and are not forced to do so at an R51.57\/$ rate. This will make the university unaffordable.<\/p>\n\n\n\n If the local universities are still viable options in 18 years, you can bring back your foreign currency for education purposes. <\/p>\n\n\n\n An example of this is the performance of the S&P 500. <\/p>\n\n\n\n The S&P 500 annualised return is 9.72% on its own; however, in Rand terms, it has been 16.18% per annum for the last 18 years (this factor in the return combined with the weakening of the rand). <\/p>\n\n\n\n
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