If your child starts grade R this year, you can expect to pay between R1.4m (for public education) and R3.4m (for private education) over their schooling career - including primary school, high school and a three-year university qualification, according to Marius Pretorius of Old Mutual Personal Finance.
He says that with long-term education inflation surpassing general inflation, access to education remains unaffordable for many families. Yet, a previous survey by Old Mutual found that 57% of urban SA parents not actively saving for their children's education.
"Given the ongoing pressure on personal finances, the reality is that many parents struggle to prioritise saving for their child's education," says Pretorius.
He says it is important to create a holistic financial plan to be able to afford quality education for your children. Furthermore, it is important to start saving for this purpose as early as possible.
"Depending on your needs, you can choose between solutions starting from as little as R200. This means by simply cutting out eight coffees per month, you can start saving for your child's education," says Pretorius.
He adds that, rather than being panicked into inaction, empower yourself with information and ensure your financial plan mirrors your financial priorities.
The expected education inflation assumption takes into account the education inflation over the last 5 years and the actual CPI rate. The figures on the average cost of education are based on selected government and private schools and universities. The projected annual school-fees are increased at a flat rate of 9% annually.