{"id":774204,"date":"2024-05-29T17:00:00","date_gmt":"2024-05-29T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=774204"},"modified":"2024-05-28T16:21:19","modified_gmt":"2024-05-28T14:21:19","slug":"what-you-need-to-save-to-send-your-child-to-university-in-south-africa-starting-from-when-theyre-born","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/774204\/what-you-need-to-save-to-send-your-child-to-university-in-south-africa-starting-from-when-theyre-born\/","title":{"rendered":"What you need to save to send your child to university in South Africa \u2013 starting from when they&#8217;re born"},"content":{"rendered":"\n<p>Although the cost of living in South Africa continues to strain households, experts warn that the longer you wait to start saving for your children&#8217;s education expenses, the harder it will be. <\/p>\n\n\n\n<p>There are over 20 public universities in South Africa, and tuition fees vary depending on the university&#8217;s policy, the type of study, and the course length.<\/p>\n\n\n\n<p>However, according to data from Old Mutual, the average cost of sending a graduate to university in South Africa in 2023 and 2024 is R55,900. <\/p>\n\n\n\n<p>Concerningly, this cost is expected to rise to R95,700 by 2030 and reach R177,200 by 2038.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"eygAzY6OpN\"><a href=\"https:\/\/businesstech.co.za\/news\/lifestyle\/744973\/university-fees-2024-how-much-it-costs-to-study-in-south-africa\/\">University fees 2024: how much it costs to study in South Africa<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;University fees 2024: how much it costs to study in South Africa&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/lifestyle\/744973\/university-fees-2024-how-much-it-costs-to-study-in-south-africa\/embed\/#?secret=oMklTZP3Tz#?secret=eygAzY6OpN\" data-secret=\"eygAzY6OpN\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Understanding the rapidly increasing cost of education is crucial, especially given the tough economic environment South Africans face in 2024, which has started to bite parents\u2014especially young families. <\/p>\n\n\n\n<p>Curro noted in its financial results published in March that enrolment numbers showed that some parents are struggling due to the higher cost of living in South Africa.<\/p>\n\n\n\n<p>The group said young families have been hit hard by the rampant hikes in the cost of living in South Africa, which has resulted in a reduction in the enrolments of learners in the youngest grades of primary schools.<\/p>\n\n\n\n<p>Furthermore, a survey conducted by 1Life noted that 65% of parents were very worried about paying school fees in general.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-21-120733.png\"><img loading=\"lazy\" decoding=\"async\" width=\"603\" height=\"595\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-21-120733.png\" alt=\"\" class=\"wp-image-772936\" style=\"width:239px;height:auto\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-21-120733.png 603w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-21-120733-300x296.png 300w\" sizes=\"auto, (max-width: 603px) 100vw, 603px\" \/><\/a><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/my.profileme.app\/marnusmostert\" target=\"_blank\" rel=\"noreferrer noopener\">Marnus Mostert<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>According to Marnus Mostert, a franchise principal and financial adviser, navigating debt obligations in South Africa poses a significant challenge, especially given the prevailing high interest rates. <\/p>\n\n\n\n<p>As a result, he added that individuals, including parents, find themselves halting education payments to address pressing debt concerns.<\/p>\n\n\n\n<p>&#8220;This short-term solution, however, overlooks the plethora of strategies available to manage debt while still pursuing essential financial objectives like education,&#8221; said Mostert.<\/p>\n\n\n\n<p>He stressed that the longer you wait to start saving for your children&#8217;s education expenses, the harder it will be.<\/p>\n\n\n\n<p>To illustrate this, Mostert showed the escalating monthly payments required to afford a 3-year degree considering university fees in 2024\u2014as estimated by Old Mutual\u2014and how hard it gets the longer you wait. <\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"table-responsive\"><table class=\"table\"><thead><tr><th class=\"has-text-align-center\" data-align=\"center\">Age of child when you start saving<\/th><th class=\"has-text-align-center\" data-align=\"center\">Monthly instalment needed<\/th><th class=\"has-text-align-center\" data-align=\"center\">Investment value now<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">0<\/td><td class=\"has-text-align-center\" data-align=\"center\">R1\u00a0118<\/td><td class=\"has-text-align-center\" data-align=\"center\">R199\u00a0801<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5<\/td><td class=\"has-text-align-center\" data-align=\"center\">R1 414<\/td><td class=\"has-text-align-center\" data-align=\"center\">R190\u00a0802<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">10<\/td><td class=\"has-text-align-center\" data-align=\"center\">R2\u00a0097<\/td><td class=\"has-text-align-center\" data-align=\"center\">R182\u00a0209<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">15<\/td><td class=\"has-text-align-center\" data-align=\"center\">R5\u00a0100<\/td><td class=\"has-text-align-center\" data-align=\"center\">R174\u00a0003<\/td><\/tr><\/tbody><\/table><\/div><figcaption class=\"wp-element-caption\"><em>Assumptions: 3-year degree, annual contribution increases of 6%, expected growth rate of 8%, and education inflation of 9%.<\/em><\/figcaption><\/figure>\n\n\n\n<p>Mostert&#8217;s calculations show that saving just over R1,000 a month from when the child is born will build to almost R200,000\u2014which could comfortably cover three years&#8217; tuition fees and any miscellaneous expenses.<\/p>\n\n\n\n<p>However, if you wait until your child is 15 years old, the monthly instalments needed quadruple, and the value drops to R174,000. <\/p>\n\n\n\n<p>While both scenarios come close in value, the latter of over R5,000 per month could put a family into trouble if the economy experiences any turmoil\u2014much like South Africa and many other parts of the world after the Covid-19 pandemic.<\/p>\n\n\n\n<p>&#8220;Budgeting, often underestimated, holds significant power, particularly for parents, as education gains increasing importance in society,&#8221; said Mostart. <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/trending\/772889\/how-much-you-need-to-earn-to-send-your-kids-to-private-school-in-south-africa\/\">How much you need to earn to send your kids to private school in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is how much you need to save every month depending on the age of your child to afford university fees in 2024. <\/p>\n","protected":false},"author":92,"featured_media":657679,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9876],"tags":[853],"class_list":["post-774204","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/774204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=774204"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/774204\/revisions"}],"predecessor-version":[{"id":774275,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/774204\/revisions\/774275"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/657679"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=774204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=774204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=774204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}