Greetings, and welcome to the 32nd edition of the Wallet Wellness Newsletter - your midweek source of practical financial tips to elevate your money management skills!

We hope you got a chance to read last week’s edition, where we discussed the 1% rule that can help you turn your salary into savings. This week, we shift gears to help you plan for Term 3’s school expenses.

As always, be sure to check out the Concept Corner below for a deep dive into the money concept of the week.

Let’s dive in! 

MONEY254 TIP OF THE WEEK

How to Plan for Your Child's School Expenses This August Holiday

Most parents think of school fees as a “next month” problem. So when August rolls in, it’s easy to focus on day trips, visits to the village, or buying extra food for the kids at home.

But the truth is, Term 3 begins in early September — just weeks away. And it's usually the shortest term, yet still heavy on financial demands.

Practical Example: Spreading the Burden This Holiday

Let’s say your child’s school fees for Term 3 are Ksh18,000. You have just over 4 weeks to prepare.

Here’s how you could break it down:

Week 1 - Save Ksh5,500

• You’ve just been paid. Treat school fees as a priority bill — save first.

• Put the Ksh5,500 in a separate mobile wallet or savings account. If it is possible, you can save more than Ksh5,500 from your salary.

• Buy one essential item early — e.g., school shoes or a backpack.

Week 2 - Save Ksh4,500

• Review your budget and spending from Week 1.

• Redirect funds from non-essentials (e.g., takeout, Wi-Fi subscriptions, and streaming services).

• Purchase another item from the shopping list — e.g., uniform or textbooks.

Week 3 - Raise Ksh4,000

• Use this week to build consistency.

• Take advantage of any side income (e.g., weekend gigs).

• Shop early to beat price hikes on lunch boxes, stationery, etc.

Week 4 - Raise Another Ksh4,000

• In week 4, you will only have Ksh4,000 left to meet the full amount.

• If you have depleted your salary, you can now use other savings that you had. For instance, you can take out money from an MMF where you have been saving up.

• In the event that push comes to shove, you can now borrow to the full balance. This can be a small loan from your chama. Given that the remaining amount is not much, it will be easy to repay.

This reduces the pressure of coming up with the full amount at once — especially with other expenses like uniforms, shopping, and transport still pending.

Other tips

Automate What You Can:
Use mobile banking or a standing order to send the saved amount into a “School Fees” savings account. This protects you from spending the money.

Break Down Expenses:
School reopening isn’t just about fees. Use this August to buy:

• Uniforms/shoes – Start now, before prices spike

• Books/supplies – Buy second-hand or borrow from older kids

• Transport fare – Include in your weekly budget so it doesn’t catch you off guard

Final Thought

The August holiday is short, but school reopening in September is certain. Prices are going up, demands are rising — but your planning can stay ahead.

Treat school fees like a rolling expense, not a last-minute emergency. Start now. Break it down. Build the habit. And give your child a smooth start to Term 3 — while giving yourself financial peace.

CONCEPT CORNER

House Without Land

This is a concept in land ownership in Kenya that gives one the right to build on another’s land under an agreement that does not pass title to the land. In this case, an individual enters a contract with a landowner to build a house on the land. Instead of owning the land, the house owner is required to pay rent to the land owner. Read on. 

Money Tips & Career Advice

MONEY254 #MONEYTOK

Taxes You Will Pay for Different Investment Options in Kenya

Investing is one of the best ways to grow your wealth and prepare for future goals like homeownership, retirement, or financial independence. But before you commit your money, it’s important to understand how taxes affect your returns.

Here are the taxes you’ll pay on different investments in Kenya.

@money254hq

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That's it for this edition of Wallet Wellness. We hope these financial tips have added some energy to your hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week, and watch out for Money Weekly in your inbox this Friday.

Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.

Cheers to your wallet's well-being!

Money254 editorial team.