Public schooling for a single child can cost up to R1.6 million
According to projections by Business Tech, parents who sent their children to Grade R in 2020 can get ready to pay up to R1.6 million per child for a full 12 years of basic education in a public school, followed by a three-year tertiary degree. If you choose to go the private school route, this figure goes up to a whopping R3.7 million per child.
This estimation was based on a conservative inflation rate of 9% and does not include the expenses of anything other than outright tuition fees. In short, you’d still have to budget for school uniforms, stationery, extramural activities, sports- and club fees, as well as any extra tuition your child may require.
Who would cover schooling if something should happen to you?
Most children have godparents who are mandated to take care of them if something should happen to their parents, but in many cases the specifics of this care and the financial implications thereof are not discussed in detail. Who would foot the bill if something should happen to you, leaving your child the responsibility of their godparents?
An education protector policy from a registered financial services provider is a good way to lay this concern to rest. The policy is tied to a parent’s personal life insurance policy and pays out in the event that they should meet an untimely death or become incapable of performing their job. Ask your financial advisor for more information in this regard.
Savings don’t have to be huge monthly amounts
According to recent findings by Old Mutual, up to 55% of parents in South Africa’s urban sectors are not actively saving towards their children’s education. You can start saving for your child’s academic future now by putting away as little as R300 per month with the assistance of a financial advisor who understands your specific needs and circumstances. It may taking some getting used to at the outset, but you will be happy that you made the budgetary sacrifice when you’re in a solid financial position to provide for your offspring later down the line.
There you have it – a few important things to consider when you plan for your child’s academic future in South Africa. If you are currently feeling overwhelmed by education and other lifestyle expenses, and can’t seem to get ahead of your monthly debt repayments, we invite you to get in touch with a Libertine Consultants representative. We’re here to help you take back control of your finances with our range of debt services and credit services.