{"id":666707,"date":"2023-02-25T13:00:52","date_gmt":"2023-02-25T11:00:52","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=666707"},"modified":"2023-02-25T13:05:34","modified_gmt":"2023-02-25T11:05:34","slug":"the-costs-of-having-a-baby-in-2023-and-how-to-better-prepare-your-finances","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/666707\/the-costs-of-having-a-baby-in-2023-and-how-to-better-prepare-your-finances\/","title":{"rendered":"The costs of having a baby in 2023 – and how to better prepare your finances"},"content":{"rendered":"

Welcoming a baby into the world can be a wonderful and joyous experience. The new arrival can sometimes bring a more profound sense of purpose and, inevitably, a lot of extra bills.<\/p>\n

In light of this, the financial education platform JustMoney spoke with industry experts to determine the significant expenses parents could expect when having a baby in 2023.<\/p>\n

“Many couples discover that the cost of caring for a baby is much higher than they expected,” said the marketing manager of JustMoney, Shafeeka Anthony.<\/p>\n

“Informing yourself about the financial implications before you fall pregnant can help you differentiate between expenses that you can’t avoid and products and services that are well marketed but don’t really need,” she added.<\/p>\n

Baby basics\u00a0<\/strong><\/p>\n

According to MiWayLife customer experience head Madikana Kekana, first-time parents in South Africa spend, on average, around R100,000 a year to raise a child<\/strong>.<\/p>\n

She also noted that a nursery can cost R5,000 or more for furniture, a baby-changing station, and related equipment.<\/p>\n

Managing director of Dis-Chem, which owns Baby City, Saul Salzman, added that parents should also expect to spend at least R10,000 for the new arrival essentials.<\/p>\n

These include a receiving blanket, clothing, nappies and a diaper bag, wipes, bottles, pacifiers, formula or a breast pump, a cot and bedding, a pram and a travel seat.<\/p>\n

Salzman said that parents needing to return to work and require the support of a nanny, au pair, or cr\u00e8che could expect additional bills of R33,500 to R70,000 a year.<\/p>\n

School fees<\/strong><\/p>\n

Although parents only have to consider paying school fees several years after the baby’s first steps and spoken words, it is still an important financial aspect of raising a child.<\/p>\n

According to Old Mutual<\/a>, many parents are not prioritising saving for their child’s education.<\/p>\n

This is concerning, considering that long-term education costs outstrip salary inflation and outpace the Consumer Price Index (CPI) by 2.5% and 3% annually, said Old Mutual.<\/p>\n

To help parents save for their child’s education, Old Mutual calculated the cost of one year of education in 2023 and for the next 15 years.<\/p>\n

“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<\/strong>, over their school career,” said Marius Pretorius, head of marketing: retail savings and income solutions at Old Mutual Personal Finance.<\/p>\n

\n
\n\n\n\n\n\n\n\n
Level and type of education<\/th>\n2023<\/th>\n2030<\/th>\n2035<\/th>\n2038<\/th>\n<\/tr>\n
Public primary school<\/td>\nR24 500<\/td>\nR41 900<\/td>\nR61 500<\/td>\nR77 500<\/td>\n<\/tr>\n
Public high school<\/td>\nR36 100<\/td>\nR61 900<\/td>\nR90 900<\/td>\nR114 500<\/td>\n<\/tr>\n
Private primary school<\/td>\nR71 500<\/td>\nR122 600<\/td>\nR180 100<\/td>\nR226 800<\/td>\n<\/tr>\n
Private high school<\/td>\nR105 100<\/td>\nR180 100<\/td>\nR264 700<\/td>\nR333 400<\/td>\n<\/tr>\n
University<\/td>\nR55 900<\/td>\nR95 700<\/td>\nR140 700<\/td>\nR177 1200<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

Note:<\/strong> 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.<\/em><\/p>\n

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Tips to help you plan for your baby<\/strong><\/p>\n

These statistics can be daunting for any prospective parent, but careful planning can help you can save money.<\/p>\n

JustMoney offers the following general advice relating to a new baby:<\/p>\n