How much does it cost to send a child to private school vs public school in South Africa?

Many South Africans are struggling to prioritise saving for their child’s education in the face of escalating school costs, a worsening cost-of-living issue, and many years of recession and pandemic-related instability.

Given these challenges, many parents in 2023 are contemplating alternatives to traditional schooling, such as the rapidly expanding possibilities of online and homeschooling.

This is according to new research from Old Mutual, which warns that the situation is anticipated to deteriorate as the expense of long-term education outpaces pay inflation and the Consumer Price Index (CPI) by 2.5% to 3% yearly.

“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 rand sum includes elementary and secondary school, but not pre-primary or 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 chart below shows the estimated cost of a year of schooling this year and for the following 15 years, as predicted by Old Mutual.

Level and type of education	2023	2030	2035	2038
Public primary school	R24 500	R41 900	R61 500	R77 500
Public high school	R36 100	R61 900	R90 900	R114 500
Private primary school	R71 500	R122 600	R180 100	R226 800
Private high school	R105 100	R180 100	R264 700	R333 400
University	R55 900	R95 700	R140 700	R177 1200

Pretorius stated that parents might avoid this shock by saving as soon as feasible.

In reality, given the rate at which school costs in South Africa are rising, it is improbable that you will be able to save the whole cost of your child’s education. However, according to Pretorius, it is not always the purpose of a viable college savings strategy.

He also provided the following advice for starting 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.

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