The true cost of education

The Citizen

03-08-2025

As parents, we will do everything in our power to provide for our children.
We sacrifice and often neglect our own needs to cement the best possible future for them.
Parents often think that private schooling, expensive extracurriculars or even overseas education is the only way to invest in their futures, but the hard truth is that over-investing in your children could come at the cost of investing in your retirement.
'Quality education is important, but too often I meet people in their 60s with no retirement savings, quietly worrying about becoming a financial burden to their children,' said Hans.
'Private school fees can easily reach more than R100 000 per child. Adding additional costs for transport, uniforms, textbooks, sports, music, tutoring, a family could easily spend R1m per child, from Grade 1 to matric.'
He says every parent should ask: 'Am I getting value for money from private schooling? The answer is not always a clear yes. Government schools often offer more in terms of subject choices, cultural activities and sports at a vastly reduced cost.
'Even if you add the cost of private tuition in specific subjects, you would still spend far less, while giving your child the academic support they need.'
Myburgh explained that if you invested just half of what you would spend on private schooling from the time your child's birth, you could retire with a nest egg of over R3m.
'We have been conditioned to believe that putting our children first is noble, but there is one thing most parents do not consider,' he said.
'You can take out a loan for education, but you cannot take out a loan for retirement. Education is a stepping stone towards the future. If you fund it on your own, you may end up being financially dependent on them.'
Factors that parents should consider:
• Run the numbers early
Before committing to a school, ask whether you can afford the fees while still saving for retirement.
Status does not guarantee your child's future; it is about how they apply their education in the pursuit of growing opportunities.
• Know your limits
Do not sacrifice your family's future to fund prestige.
• Balance the equation
Every rand spent on education must be matched with a rand towards your retirement.
• Be honest
Teach your children the value of money. Help them understand that you are planning for everyone's future, not just their present.
• Consider long-term impact.
A child attending a good government school with present, stress-free parents might achieve more than one at an elite school whose parents are constantly worried about money.
'You love your children and you want to ensure that they have the best possible future,' said Hans, as a final thought.
'Loving them may sometimes come in the form of modelling good financial behaviour, protecting your dignity and giving them the gift of independent parents who are financially secure.'
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