Sunday, August 22, 2010

Child Grants not a Solution for poverty alleviation

I would like to acknowledge the SA government effort in the fight against poverty but child grant to me is fruitless. According to my observation, I have seen parents who misuse children grants for their personal needs while children are suffering.

How would it be if the government set up the child trust fund instead of child grant by the very same money they are dishing out each and every month. Through this trust Fund the government can send every child a voucher for those families who qualifies.
The money can be put in trust for the future of the children with the stipulation that it can not be withdrawn by the child, parents or any other party until the child turns 18 instead of wasting tax payers’ money by child grants that are not rightly used for maintenance of children.

The rationale behind this would be to save for children so that they can have large enough fund to help with their education cost especially university. We have quiet large number of matriculants who pass their exams well but fail to access University and still have no solutions, we have large number of drop out and still no solution, students are fighting for free education at university level and still we do not have solution. Last time I check the child grant was R190.00 per month, surely this is a large amount of money that can help a great deal if saved for the right purpose. When making my calculations, if you start to save R190.00 form child’s birth, by the time he/she is 18 years of age the money would be plus minus R41040 and with this money a child can register and complete studies with the assistance of NSFAS. So it means that the child will not depend heavily on NSFAS which is just a lone.


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