9 hours ago
Run on numbers: understanding the financial burden of raising a child in South Africa
A large portion of the expenses of personal income goes towards education, for those people lucky enough to have an income.
1. Momentum Investo did extensive research into what it costs to raise a child. 'At inflation-related sums, it can cost R550 000 for the first six years, between R640 000 and R880 000 for primary school, and up to R1 million for high school. A three-year degree at a South African university may cost R660,000. These numbers add up to R3 million.' Standard Bank's estimate is much the same. 'Conservative estimates indicate that it can cost around R10,000 per month in today's economy to raise a child, which means that over an 18-year period, factoring price increases, you can expect to spend over R2.5 million.' That is without considering sending the child to university.
2. In 2023, the average annual household income in South Africa was R204,359. This is based on data from Statistics South Africa's Income and Expenditure Survey (IES). It is obvious that the average household cannot afford a child. According to Statsa, 'South African households allocated the majority of their consumption expenditure to four main areas in 2023: housing and utilities, food and non-alcoholic beverages, transport, and insurance and financial services. These categories accounted for 75,6% of total household spending, meaning that three out of every four rand were directed toward these essentials.' These numbers indicate that there is very little left to spend on a child.
