As most South African parents know, times are tough. Given the ongoing pressure on personal finances, the reality is that many parents struggle to prioritise saving for their child’s education with 57% of urban South African parents not actively saving for their children’s education, according to the 2017 Old Mutual Savings and Investment Monitor.
Marius Pretorius, Head of Marketing: Retail Savings and Income Solutions of Old Mutual Personal Finance, says that with long term education inflation expected at 9% in 2019 surpassing general inflation, parents often find themselves in a pickle when it’s time to send their child to school.
“If your child starts grade R in 2019 you can expect to pay between R1 400 000 and R3 400 000, for public or private education respectively, over their school career. This rand amount includes primary school, high school and a three-year university qualification. It’s clear the time is now to make education savings part of a holistic financial plan so that when the time comes, you can afford to give your child the best education,” says Pretorius.
The truth of the matter is that education is expensive. If you’ve saved any money and your child is entering a public primary or high school in 2019 you can expect to pay on average about R37 000 this year, while a private primary school and private high school will set you back R92 400 and R148 300, respectively. When it comes to university education, parents can expect to pay R64 200 in 2019, on average.
See the table below for the increase in cost over time.