Posted on: 11th June 2025

Navigating School and University Fees: Saving for Education in South Africa

Education is one of the most significant investments parents and students make in South Africa.

However, the rising costs of schooling and university fees have made it increasingly difficult for families to plan financially. Whether it’s primary, secondary, or tertiary education, understanding how to manage and save for these expenses is crucial.

In this article, we’ll guide you through the process of saving for education , from understanding the costs to practical tips on how to manage them.

The Rising Cost of Education

The cost of education in South Africa has been steadily increasing over the years.

In fact, the cost of sending your child to a private school can exceed R78,000 annually, while public school fees average around R32,000. As time goes on, these figures are only expected to rise. By 2035, for example, parents can expect to pay up to R350,000 per year for a private school education.

When it comes to higher education, the cost is similarly daunting. A three-year degree at a university can cost anywhere between R300,000 to R350,000, not including living expenses.

As the cost of education continues to increase, it becomes more important than ever to start saving early and explore available options to help ease the financial burden.

Understanding the Financial Landscape of Education in South Africa

The financial landscape of education in South Africa is complex, with various savings options, loans, and financial aid available to help families. Let’s explore these options in more detail.

Education Savings Plans

One of the best ways to prepare for education fees is by starting a savings plan as early as possible.

Financial institutions like Old Mutual offer education savings plans, such as unit trusts, that are specifically designed to help families plan for the future. These plans help grow your money over time, giving you the flexibility to meet your financial goals.

Additionally, tools like education calculators can help you estimate the amount you’ll need to save to cover school and university costs.

These calculators take into account inflation and future fee increases, so you can be sure you’re saving the right amount.

Student Loans

For those pursuing tertiary education, student loans are a common way to finance their studies.

In South Africa, banks like Standard Bank offer student loans that can cover everything from tuition fees to accommodation, textbooks, and study equipment.

What’s great about student loans is that some don’t require surety or collateral, and repayment is typically deferred until after graduation. This gives students some breathing room to focus on their studies without the added pressure of immediate financial repayments.

Bursaries and Scholarships

Bursaries and scholarships are another valuable resource for financing education. Many government bodies, private companies, and educational institutions offer financial aid based on academic merit, financial need, or specific fields of study.

For example, the National Student Financial Aid Scheme (NSFAS) provides financial assistance to students who come from disadvantaged backgrounds. Similarly, many private companies offer bursaries for students pursuing careers in fields like engineering, medicine, and accounting.

If you’re considering further education, be sure to research bursary opportunities early. Applying for scholarships and bursaries can significantly reduce the financial strain of university tuition and living expenses.

Strategies for Effective Education Savings

Effective saving strategies are key to managing future educational expenses. Let’s look at how you can begin saving and grow your funds for education with careful planning and consistency.

Start Early

The earlier you begin saving for education, the better.

The power of compound interest means that even small contributions made early in your child’s life can grow into substantial amounts by the time they’re ready for university.

For example, if you start saving for your child’s university education when they’re born, even modest monthly contributions can add up over time.

Starting early allows you to take advantage of this compound growth, meaning you won’t have to save as much each month or year.

Set Clear Financial Goals

When planning for education expenses, it’s important to set clear financial goals.

Determine how much money you’ll need for each stage of your child’s education—whether it’s primary school, high school, or university—and set a realistic savings target.

By breaking down the overall amount needed, you’ll have a clearer understanding of how much to save each month. Additionally, setting specific goals allows you to track your progress and make adjustments along the way if necessary.

Regular Contributions

Consistency is key when it comes to saving for education.

Rather than trying to save a large lump sum all at once, make smaller, regular contributions to your savings account or investment plan. This way, saving becomes part of your routine, and you’re less likely to miss payments.

If you’re unsure about how much to save each month, start small and gradually increase your contributions as your income grows. Over time, even a small contribution can make a big difference.

Practical Tips for Managing Education Costs

Managing education costs involves more than just saving—it requires careful planning, research, and utilizing available resources to make informed financial decisions.

Here are some practical tips to help you manage these costs effectively.

Compare Institutions

Whether you’re looking at schools or universities, it’s essential to do your research and compare the costs of different institutions.

Public schools are typically more affordable than private schools, but they may not offer the same facilities or specialised curricula. On the other hand, private schools may come with a hefty price tag, but they often offer smaller class sizes and additional extracurricular opportunities.

Similarly, universities vary greatly in terms of tuition fees, living costs, and course offerings. Consider looking into the costs of different universities and weighing these against the potential return on investment.

Utilise Financial Tools

In addition to savings plans, there are various financial tools available to help manage education-related costs. Budgeting apps, online calculators, and financial management software can help you track expenses and set realistic goals.

Using these tools allows you to stay on top of your financial planning and make adjustments as needed. You can set reminders for monthly contributions or receive alerts when bills are due, ensuring that you don’t fall behind.

Explore Alternative Funding Options

Crowdfunding is an increasingly popular option for students who need help funding their education.

Platforms like Feenix allow students to raise funds for tuition and living expenses by reaching out to friends, family, and the public.

Additionally, many South African universities offer work-study programmes, which allow students to earn money while gaining experience.

This can help alleviate the financial burden of education and give students valuable work experience at the same time.

Conclusion: Empowering Financial Planning for Education

Saving for education in South Africa may seem overwhelming, but with the right tools and strategies, it’s entirely achievable.

The key is to start early, set clear financial goals, and make regular contributions to your savings. By taking proactive steps now, you’ll ensure that your child or yourself is prepared for the financial demands of schooling and university life.

Don’t forget to explore the various financial resources available, from savings plans and student loans to bursaries and crowdfunding. With careful planning and a little dedication, navigating the costs of education can be far less stressful.