Can you afford school fees and retire well?

Mail & Guardian

24-04-2025

Jason Appel, Director and Financial Planning Specialist at Chartered Wealth Solutions.
B
y Jason Appel, Director and Financial Planning Specialist at Chartered Wealth Solutions
R2.8 million.
That's what it could cost to put one child through 12 years of private school plus three years of tertiary education in South Africa – and that's before factoring in books, uniforms or accommodation. This estimate is based on today's fees, projected to increase by around 6% annually.
To cover those costs from investments, you'd need to save approximately R56 500 a year, escalating annually, starting when your child is born. This estimate assumes a 10% annual return on investment. For most families, that's a tall order – especially when you're also trying to save for retirement, pay off a bond and manage rising living costs. No wonder so many parents feel overwhelmed. And when pressure rises, the temptation to make short-term decisions with long-term consequences increases, too.
With a clear plan, it's possible to give your children an excellent education and retire well.
Start early – but it's never too late
If you've just had kids, the time to start planning is now. The sooner you begin, the more time compound growth has to work in your favour. Education costs rise faster than general inflation – at around 6%-10% per year – so it pays to get ahead early.
That said, it's never too late to start. Even if your child is already in school, having a plan is always better than not having a plan at all.
Think strategically about school choices
Not all good education comes with a premium price tag. Some parents choose more affordable public or semi-private schools in the early years and invest more in high school. Others select schools based on values and community fit, not just brand prestige.
There are also more education options than ever before. Online and hybrid schooling platforms offer recognised qualifications like CAPS, IEB, Cambridge and GED at significantly lower costs than many traditional private schools. These models can also cut transport, uniform and other costs – making them a viable option for some families.
The key is to do your homework. Understand what you're paying for and weigh the return on that investment in terms of your child's needs and your long-term financial well-being.
Budget honestly – and with intention
No one builds wealth by accident. The first step is facing your numbers – where your money is going and what your priorities are. A good budgeting exercise will reveal your money habits and allow you to realign them.
Once you've done this, create a plan that includes monthly contributions to education, retirement and an emergency fund. Don't forget to review your life insurance – if something happens to you, your children's future shouldn't be left to chance. Some insurers include education benefits as part of their life cover.
Planning for education takes time, effort and courage, but it's not something you can afford to ignore. If a goal feels out of reach, it's wise to adjust the plan or consider different options.
Trying to keep up with the Joneses is exhausting and expensive. Instead, focus on building a plan that works for you – one that's grounded in intention, not comparison.
Invest with purpose, not just convenience
Simply transferring funds into a savings account isn't always the best move – it's far too tempting to dip into these savings for emergencies. It's preferable to save in an investment product with limited access to protect your long-term goals.
The time you have until the money is needed matters.
Your investment horizon – how many years you have before school fees or university costs kick in – should guide your investment product and portfolio choice. The longer your timeframe, the more growth potential you can access.
A financial planner can help you calculate how much you need to save each month to meet your goal. If the number seems out of reach, you can revisit your spending plan, make small adjustments and start with what you can afford. Increasing your contributions yearly, even slightly, can make a big difference over time.
Don't squander windfalls
Bonuses, tax refunds and other unexpected income are great opportunities – if you don't spend them before they arrive. Label these for education and other planned expenses. Make this a habit.
Many schools offer a discount for term or annual fees paid in advance, and these savings can ease the pinch of rising school fees.
Think practically and creatively
Sometimes, getting the numbers to work takes more than a spreadsheet. I've seen families scale down to one car and others renting out their homes over the holiday seasons to raise additional funds for school fees.
These solutions may not work for everyone, but they show what's possible when mindset meets motivation. This is what financial planning is all about: using what you have to create the life you want.
Giving your children the best possible education without sacrificing your retirement dreams is possible and a smart, future-focused goal worth striving for. Speak to a qualified financial planner who can help you build a plan that's realistic, intentional and tailored to your life. The sooner you start, the more options you'll have. For more information, visit