How to Save for Your Child’s College Education Using Mobile Money

Saving for your child’s college education can feel overwhelming, especially with rising tuition fees and the everyday pressure of living expenses. But with smart planning and the convenient tools available today – especially mobile money – parents in Uganda, Kenya, and across East Africa can build a reliable education fund step by step.

This guide will show you practical, realistic ways to start and maintain a college savings plan using systems you already use daily.

Why Start Saving Early for College?

College education is one of the biggest investments you’ll make for your child’s future. The earlier you start, the easier it becomes to:

• Spread costs over many years

• Avoid high-interest loans

• Handle emergencies without disrupting education

• Give your child access to better opportunities

Even small daily savings grow significantly over time.

Step 1: Set a Clear Education Savings Goal

Begin by estimating the total amount you may need:

• Tuition fees

• Accommodation

• Books and materials

• Transport

• Living expenses

For example:
If you aim to save UGX 6,000,000 in 10 years:

• Monthly target: UGX 50,000

• Weekly target: UGX 12,500

Break big goals into manageable contributions.

Step 2: Use Mobile Money as Your Saving Tool

Mobile money platforms like:

• MTN MoMo

• Airtel Money

• M-Pesa

can act as powerful savings tools when used intentionally.

Smart ways to save using mobile money:

• Create a dedicated savings line or wallet

• Use SIMs exclusively for savings

• Avoid spending from the savings account

• Set reminders for weekly deposits

If your network supports it, use:

• MoMo Savings Accounts

• Mobile Banking integrations

• Fixed wallet savings features

Step 3: Automate Your Savings

Consistency beats large one-time deposits.

Try:

• Automatic weekly transfers

• Standing orders from your main wallet to savings wallet

• End-of-week balance freeze method

Even UGX 5,000 per week can build strong education reserves over time.

Step 4: Open a Formal Education Savings Account

Combine mobile money with banking solutions such as:

• Fixed Deposit Accounts

• Children’s Education Accounts

• SACCO Education Funds

Transfer mobile money savings monthly into these accounts to earn interest and ensure security.

Step 5: Cut Unnecessary Costs & Redirect to Savings

Identify small daily expenses that can be redirected:

• Unused subscriptions

• Extra airtime

• Impulse purchases

• Weekend luxury spending

Channel these funds directly to your child’s education savings.

Step 6: Maximise Side Income for Education Funds

Consider dedicating income from:

• Small businesses

• Freelancing

• Farming proceeds

• Rental income

Direct a percentage purely for education.

Step 7: Track and Review Progress Regularly

Use:

• PesaSmart tracking sheets

• Simple notebooks

• Mobile apps

• Monthly savings summaries

Review your progress every 3–6 months and adjust when necessary.

Common Mistakes to Avoid

• Waiting until secondary school

• Using savings for other emergencies

• Inconsistent deposits

• Not having a clear savings target

• Depending only on future income promises

Simple Saving Plan Example

How PesaSmart Helps

PesaSmart provides:

• Smart saving guides

• Education planning tips

• Mobile money calculators

• Financial planning tools for parents

Helping you make informed decisions with your income.