Investing in your child's education: Preparing for the long-term costs

As families gear up for the new school year, many parents find themselves grappling with the financial strains of providing their children with essential educational tools. While the immediate costs of stationery, uniforms, and school fees often dominate budget conversations, the true financial implications of education stretch far beyond the back-to-school rush. With expenses continuing to rise year after year, it’s imperative for parents to approach this reality with careful planning and foresight.

Brigid McCleary, a financial planner at Designed Wealth, underscores the importance of education as a profound investment in a child’s future. “The true value of education lies in who your child becomes, not in what you buy for them today. Your role is not to impress them with things, but to equip them with the skills, resilience and imagination they will need to shape their future with confidence,” she says.

However, McCleary stresses that the building blocks of education start long before kids walk into their first classroom. Simple yet meaningful daily actions, such as reading to children, actively listening to their ideas, and encouraging independent thought, cultivate emotional strength and curiosity from a young age. “Allowing them to make choices, even when it takes longer, teaches confidence and independence. Decision-making grows through practice, not age,” she points out. A child hesitant to select the colour of a popsicle may struggle later with choosing school subjects or even a career path as an adult.

The pressing issues of nurturing intellect are matched by the equally crucial responsibility of securing their financial futures. In South Africa, education costs are outpacing overall inflation, and the figures are staggering. Providing one child with a basic public school education now costs around R655 000, excluding uniforms, transport, and extracurricular activities. University fees are no less daunting, ranging from R90 000 to R150 000 annually, varying by institution, course, and locality. The total cost for a full qualification can climb between R300 000 and more than R600 000.

“These are not scare tactics. This is the financial reality families face,” warns McCleary. “When parents do not prepare, their children often end up paying the price, both financially and emotionally. A child with potential, but without the means to pursue it, learns very early that dreams come with limits. Many end up choosing cheaper subjects, safer options, or arriving at adulthood burdened with loans that may haunt them for years.”

The silver lining, according to McCleary, is that parents have options, and time is their most valuable asset. There isn’t a universal solution that fits every family’s needs, but there are tailored strategies available. Long-term education policies can provide stability, particularly for parents in higher tax brackets who can benefit from tax structures and tax-free payouts. Tax-free savings accounts offer flexibility and long-term advantages for families with lower incomes, while unit trusts provide the liberty to adjust contributions over time, often with enhanced tax efficiency.

“The true goal isn’t finding a one-size-fits-all solution; it’s about taking the first step,” says McCleary. Small, consistent contributions — whether R200 or R500 monthly — can develop into meaningful opportunities over time. She advocates for early financial advice to help parents understand which products align with their tax profiles, risk levels, and long-term objectives. “Expert guidance can be the difference between a child stepping into adulthood with options or stepping into adulthood already in debt.”

Ultimately, children do not require perfection or the latest gadgets; rather, they need parents who are committed to planning for a secure future they will eventually navigate alone. “A future is built quietly and consistently,” says McCleary. “It begins in the small moments, the routine savings, and the decisions made well before a child understands their significance. Time waits for nobody, and your child’s future is just around the corner. The best gift you can give them is preparation.”

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