What it costs to send a child to private vs public school in South Africa

Many South Africans struggle to prioritise saving for their child’s education amid the rising cost of education, a deepening cost-of-living crisis, and several years of recession and pandemic-related upheaval.

In light of these headwinds, many parents in 2023 are considering alternatives to traditional schooling, including the fast-growing options of online and homeschooling.

This is according to new data provided by Old Mutual, which warns that the situation is expected to worsen as the cost of long-term education is outstripping salary inflation and outpaces the Consumer Price Index (CPI) by between 2.5% and 3% annually.

“If your child starts from Grade 1 in 2023, you can expect to pay on average between R651,313 and R1,901,549, for public or private education, respectively, over their school career,” said Marius Pretorius, head of marketing: retail savings and income solutions at Old Mutual Personal Finance.

This abovementioned rand amount includes primary and high school – excluding pre-primary and university.

“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 2023, you can expect to pay on average about R24,408 and R36,072 this year, while a private primary school and private high school will set you back R71,496 and R105,084, respectively.

“When it comes to university education, parents can expect to pay R55,900 in 2023, on average,” he said.

The expected cost of one year of education this year and for the next 15 years is provided in the table below, as predicted by Old Mutual.

Note: Costs are in rands and based on education inflation of 8% per year. The amounts are rounded to the nearest hundred. The primary school costs are for Grades 1 to 7 and exclude pre-primary. University costs are for one year of an undergraduate degree.

Pretorius said parents could avoid this shock by saving as early as possible.

In real terms, with the rate at which the cost of education is increasing in South Africa, it is unlikely that you will be able to save the total cost of your child’s education. However, that’s not necessarily the goal of a workable educational savings plan, Pretorius said.

He also offered the following tips for embarking on an educational savings plan:

• Consider the options – the definition of a quality education is a very personal one that’s relative to your values, your lifestyle, and where you live. It’s about more than a school’s pass rate; at the same time, fancy facilities like indoor swimming pools are not necessarily accurate indicators of value. Learn as much as possible about the schools in your area so you can make an informed choice about what’s best for your family.

• Factor in hidden costs –  fees are not the only cost of education, warns Pretorius. Parents must also make provisions for transport, aftercare, uniforms, sports equipment, food, and other expenses, all subject to inflation in their own right. For those following alternative routes, there is the cost of a device with the correct specifications to enable online learning, fast and reliable wi-fi, and in-person tutoring.

• Start early and stay the course – the earlier you start saving for your child’s education, the better. But since you probably won’t save up the total cost, the idea is to contribute consistently, invest strategically to outpace inflation and increase your contributions over time. This will give you a crucial buffer to help you cope with the rising cost of education. You may have to dip into your funds to pay fees, but the important thing is to keep saving and contributing no matter what.

• Examine your money habits – most South Africans will only ever draw up a budget when completing a credit or loan application. Even then, the exercise is typically not very accurate. But the truth is that you cannot save for your child’s education unless you take a long hard look at your spending and work to improve your money habits.

• Speak to a financial planner – when you’re facing the financial challenge of saving for your child’s education, the most effective step is to consult a professional financial advisor and take their lead. A qualified financial advisor can provide the most comprehensive and tax-efficient savings options.

Read: How fees at South Africa’s most expensive private schools have changed in the last 10 years