Overview on cost of educating a child in South Africa from early childhood through to university. What will you pay when your child reaches primary school, high school and university. The presentation takes you through the effects of education inflation.

1. Education = Future
If you think education
is expensive, try
ignorance.
Presented by Dieter Sauerbier
A Liberty Life Financial Advisor

2. Disclaimer
The information and examples in this
presentation are for demonstration
purposes only, and should not be
considered as advice.
You are encouraged to discuss any
financial planning requirements with
your financial adviser.
Luckily for you, the gentleman currently
presenting is qualified to give advice, so
please set up an appointment after the
show.

3. Why are we here?
Recently the South African government
calculated that the cost of raising a
child from birth to 18 years of age
could reach R 1 681 470
They also dropped the maths pass rate
to 20%
• How did they get to that number?
• What are the major expenses?
• How do I plan to save?
• What if I'm no longer around to
support my child?
Let me show you
Today I’d like to focus on the cost of education.

4. How some things have changed

5. In the beginning
At this stage you would have done some pre-planning.
• Furnishing the nursery = R 7 000
• Feeding equipment and accessories = R 5 500
• Clothing & nappies = R 3 000
• Bathing supplies = R 2 500
• Baby proofing the house = R 1 500
• Travel Gear = R 5 500
Total set up cost = R 25 000

7. Pre-School
Stay at home parenting or child
care?
• Day care or Crèche, expect to pay
between R 1450 and R 3600 per
month
• Nannies (who don’t live in) cost
between R 4000 to R 6000 per
month

9. Quick lesson on inflation
• Current inflation rate is roughly 6%, but what does that
mean?

10. Primary School
2017 School fees
Edgemead Primary
school
R 13 280
Curro Century City
with out day care
R 30 000
Camps Bay Prep
R 39 324
Reddam House
Prep
R 75 480
Western Province Prep
grades 0 -2 R 49 645.
R 80 770

11. Education inflation
Average over the period is 9.18%

12. Primary school fees
Age attained Year
Edgemead
2017 school
fees
R 13 280
Curro 2017
school fees at
R 30 000
Reddam 2017
School fees at
R 75 480
7 2023 R 24 590 R 50 320 R 126 590
8 2024 R 26 860 R 54 850 R 137 990
9 2025 R 29 330 R 59 780 R 150 400
10 2026 R 32 030 R 65 160 R 163 940
11 2027 R 34 970 R 71 030 R 178 690
12 2028 R 38 190 R 77 420 R 194 780
13 2029 R 41 700 R 84 380 R 212 300
Inflation 9.2%
Total cost for primary school
over 7 years
Curro = R 462 940
Reddam = R 1 164 690
Edgemead = R 227 670

14. So how do you do it?
• You need to start planning now!
• Set your goals.
• Determine what you can afford.
• The important thing is that you start somewhere.
• With all the additional expenses
• Sleep deprivation, Lack of time, possibly not at the top of
you game
• Its easy to put this off until tomorrow.

15. Illustration is based on R1000
per month
5% increase per annum
With an 8% return year on year
Total Saving R 129 251
Total invested R 97 704
Total Interest R 31 547

17. High School
2017 School fees
Edgemead High R
18 520
Wynberg Boys
High
R 40 000
Rondebosch Boys
High
R 41 400
Bishops
R 96 360
Herschel Girls
School
R 94 780

18. High school fees
Age
attained
Year
Edgemead
2017 School
fees
R 18 520
Rondebosch
2017 school
fees
R 41 400
Bishops 2017
school fees
R 96 360
14 2030 R 63 500 R 126 930 R 295 430
15 2031 R 69 340 R 138 350 R 322 010
16 2032 R 75 720 R 150 800 R 350 990
17 2033 R 82 690 R 164 380 R 382 580
18 2034 R 90 300 R 179 170 R 417 020
Inflation 9.2%
Total cost for high school
over 5 years
Rondebosch = R 759 630
Bishops = R 1 768 030
Edgemead = R 381 550

19. Illustration is based on R1000
per month
5% increase per annum
With an 8% return year on year
Total Saving R 407 725
Total invested R 235 183
Total Interest R 172 542

21. University
# Fees must fall! – But will they?
What are the chances ?

22. UCT fees 2015

23. University fees
Age attained Year
Bcom
In 2017
R 62 500
Bsc
Engeneering
In 2017
R 53 000
19 2035 R 332 750 R 282 170
20 2036 R 363 360 R 308 130
21 2037 R 396 790 R 336 480
22 2038 R 433 290 R 367 430
Inflation 9.2%
Total cost for University over
4 years
Bcom = R 1 526 190
Bsc = R 1 294 210

24. Summary of Education costs
Primary School
From To Edgemead Reddam
2023 2029 R 227 670 R 1 164 690
From To Edgemead High Bishops
2030 2034 R 381 550 R 1 768 030
High School
From To Bcom Bsc
2035 2038 R 1 526 190 R 1 294 210
University
Total
Option B R 4 226 930
Option A R 2 135 410
Option A Option B

25. Illustration is based on R1000
per month
5% increase per annum
With an 8% return year on year
Total Saving R 768 040
Total invested R 364 061
Total Interest R 396 486

26. So where to from here?
• Consider the best savings product
based on your circumstances
• Build your life long plan
• Don’t panic!

27. Savings options
• Savings Account
• Unit Trust/Collective investment
• Tax free Saving
• Endowment

28. “Peace of mind is attained not by
ignoring problems, but by solving
them”
- Raymond Hull
Thank you.