EDUCATION

SOBERING STATS

Last year, it was widely reported that the cost of educating a single child – from Grade R through university and taking inflation into account – could set you back R1.6 million. Double this if you plan on sending your child to a private school and want them to pursue a postgraduate degree. Statistics South Africa calculated that in 2020, even though inflation on tertiary fees was lower than usual, education costs still climbed by 4.7 percent. Overall, schools cost parents about 6.4 percent more than in 2019 and – notably – crèche fees increased by 6.7 percent, higher than the 2019 rise of 6.2 percent. Meanwhile, Covid has introduced new hidden costs to education, and while we may be saving on transport and uniforms, the tools for digital access to enable distance learning aren’t cheap.

START PLANNING EARLIER RATHER THAN LATER

“Whereas most parents base their savings plan around the tuition fees, I would recommend doubling that to take into account other educationrelated costs,” recommends Henk Appelo, lead investment specialist at financial services provider Liberty. “The absolute best option is to start an education fund even before your children start school. The longer you have, the more flexible your options. Even if it’s in small amounts, a parent who puts away money each month from when their child is still young will have a much less stressful time growing those funds.” Check out all the options at liberty.co.za