By the time you’ve gotten over the initial shock of what it costs to have a baby (especially for first-time parents) and come to accept the preschool fees, your child will be ready to enter primary school. As you probably already know, the costs of primary, secondary, and tertiary education are already very high, and with inflation at 9.5% in 2017 – higher than South Africa’s Consumer Price Index – education is only going to become more costly.
If you have a child starting school in 2017, by the time they’ve finished primary school, high school and completed a three-year degree, their education would have cost between R1,332 112 and R3,011 415 (depending on whether they go to public or private schools). Let’s take a more in-depth look at what each aspect of your child’s education is likely to cost:
PRIMARY SCHOOL
Primary school might be a bit of a shock to the system as it serves as the introduction to the world of school fees. Parents currently pay R32 000 for a year at a public school, and R78 000 for a year at a private school today, but by the year 2035 this could be R149 000 and R364 000 respectively. These are school feels only, and not including what you’ll pay for uniforms, extracurricular activities and the equipment you may need for those activities (soccer boots or running shoes).
HIGH SCHOOL
With high school, there can come another spike in fees (and your stress levels), especially if you are thinking of sending your children to private schools. While high school fees for public schools will stay in the R32 000 a year bracket for now (remember, this translates to R149 000 by 2035), private high schools will cost you R125 000 a year today. That turns into a staggering R584 000 by the year 2035.
While this might be a reality check, remember that there are smart ways to save for this, and there are ways of cutting down on costs as you go. Pack lunches instead of giving your children tuckshop money, buy from second-hand stores, buy school supplies over the year if possible and make use of hand-me-downs. It’s also crucial to teach your children the value of money and possessions so that they look after what they have.
UNIVERSITY
If you decide to send your child to university, you have one last large expense – then again, maybe it’s better to think of it as an investment! Some parents believe that their incredible children will win themselves bursaries. But these are difficult to secure, and one has to be both realistic and prepared for the worst. The reality for most of us is that we’ll be forking out the R253 000 that a standard degree will cost per year by 2035. Keep in mind that this figure doesn’t include textbooks, accommodation, or food.
SAVE & INVEST
Now, while you may be feeling a little anxious looking at those figures, the intention here isn't to scare you. Rather, use this information to make financial plans and start saving, both for your children's future and your own. Don't dip into your retirement savings to pay for your children's education; instead, learn how to budget, cut costs, save, and invest. In our How to save series, we look at everything from cutting costs on grocery shopping to budgeting to help you put away more savings every month.