Share

You could pay up to R3.4m for your child's education, says expert

If your child starts grade R this year, you can expect to pay between R1.4m (for public education) and R3.4m (for private education) over their schooling career - including primary school, high school and a three-year university qualification, according to Marius Pretorius of Old Mutual Personal Finance.

He says that with long-term education inflation surpassing general inflation, access to education remains unaffordable for many families. Yet, a previous survey by Old Mutual found that 57% of urban SA parents not actively saving for their children's education.

"Given the ongoing pressure on personal finances, the reality is that many parents struggle to prioritise saving for their child's education," says Pretorius.

He says it is important to create a holistic financial plan to be able to afford quality education for your children. Furthermore, it is important to start saving for this purpose as early as possible.

"Depending on your needs, you can choose between solutions starting from as little as R200. This means by simply cutting out eight coffees per month, you can start saving for your child's education," says Pretorius.

He adds that, rather than being panicked into inaction, empower yourself with information and ensure your financial plan mirrors your financial priorities.

The expected education inflation assumption takes into account the education inflation over the last 5 years and the actual CPI rate. The figures on the average cost of education are based on selected government and private schools and universities. The projected annual school-fees are increased at a flat rate of 9% annually.

old mutual on education cost

(Source: Old Mutual)

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.84
+0.3%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders