In a recent back-to-school survey, 95% of parents said they are stressed, while 88% said they are financially strained.
The blues parents are experiencing now that the schools have opened for 2025 shows how important it is to treat your child’s education as a long-term investment.
The second annual Back to School Survey conducted by 1Life Insurance shed light on the significant challenges parents face during the back-to-school season, revealing a stressful and financially draining period for families across South Africa.
The fact that 95% of the respondents, who are all parents, experience stress when preparing for the new school year highlights the emotional toll that comes with balancing school-related expenses and other financial obligations.
Back-to-school preparation poses a considerable financial challenge for parents, with 88% reporting that back-to-school costs set them back financially, forcing them to compromise in other areas to afford these expenses.
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Back to school with no help for fees
The survey also showed that 77% of the respondents are solely responsible for school fees, with 40% identifying as the sole breadwinner and 37% as single parents. While only 4% of the parents manage back-to-school expenses without saving, 40% rely on savings and 56% wish they had the resources to save for these costs in advance.
In addition, the survey revealed that 50% of responding parents are still paying off school-related expenses from last year, with only 38% saying they managed to pay it off in full. A small portion (12%) indicated they were relieved of financial pressure due to their children attending no-fee schools.
According to the survey, the expenses that concern parents most are school fees (39%), school uniforms (38%) and stationery (24%). The survey also revealed that 92% of respondents’ children do not have bursaries or financial aid, leaving most families to shoulder the full cost of education.
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Parents need support
“This survey underscores the pressing need for financial literacy and support systems for South African families. Education is a cornerstone of opportunity, but it comes at a cost that many parents find overwhelming,” says Carol Mazaka, consumer director at 1Life Insurance.
“As back to school season approaches, it can be overwhelming if you feel underprepared when the time comes, especially after the festive season when you want to spend time with family and celebrate the victories of our children in the previous year,” says Hayley Parry, money coach and facilitator at 1Life’s Truth About Money.
“Preparing for back-to-school expenses in a tough economic climate requires careful planning and smart financial strategies. Parents can start by creating a detailed budget that includes all anticipated school-related costs, such as fees, uniforms and stationery to avoid surprises.
“Prioritising savings throughout the year, even in small amounts, can also make a significant difference along with exploring options for second-hand uniforms and supplies, or applying for fee exemption which can help reduce costs.”
Perry says parents can also start looking out for discounts and sales early, rather than waiting for the school rush when most items are in high demand and expensive. “For longer-term solutions, parents might consider setting up an education-focused savings account or consult financial advisors for tailored advice on managing these recurring expenses.”
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Investing or saving to combat back-to-school blues
Sheila-Ann Robey, financial adviser at Liberty agrees and says you should treat your child’s education journey like a long-term investment.
“One of the biggest financial challenges parents face today is the rapidly increasing cost of education. From crèches to universities, educational expenses seem to increase faster than the general rate of inflation, creating a strain on family budgets.
“Each year, many parents find themselves rebalancing their spending to accommodate these rising fees, which can be daunting, especially as they affect long-term financial planning.”
Education-related expenses saw a significant jump in 2024. According to Statistics South Africa, the cost of education increased by 6.3% compared to the previous year. High schools experienced the steepest increase, with fees climbing by 7.3%.
Primary schools and tertiary institutions followed closely, with both increasing fees by 5.9%. University boarding costs also surged by 8.2%, while crèches saw a 6% hike in fees. Early indicators suggest that 2025 will see similar high rates of education inflation.
“The key to managing these rising costs is to plan well ahead, much like preparing for a long-term investment or major purchase. Think of your child’s education the same way you would approach your retirement savings or home loan.”
ALSO READ: Back to school worries for cash-strapped parents
Robey says it is important to establish a 20-year plan to manage your child’s education costs at every stage. She has these tips to help you navigate the financial challenges of your child’s educational journey:
Start saving early
Just like buying a house, it is crucial to begin saving before the real costs hit. A lump sum invested early can accumulate compound interest over time, helping to offset future education expenses. Education-focused savings policies, such as education builder plans, can offer a structured way to build this fund.
Make regular contributions, even during breaks
While it might feel tempting to take a break from saving during your child’s school holidays, consistent contributions, even when fees are not due, can help smooth out the financial load. This strategy will help ensure you are always prepared for upcoming tuition payments. Many schools only charge parents for ten or eleven months per year, but you will save if you try to pay even in the extra months.
Consider education insurance
Just as you insure your home, car and savings, it is wise to consider insurance for your child’s education. Life events, such as unexpected illness or job loss, can disrupt your ability to pay for schooling. Education insurance ensures that your child’s education remains uninterrupted, no matter what happens.
Stay informed about costs
Educating yourself about current and future education costs will enable you to plan effectively. By keeping track of expected fee increases, you can adjust your financial strategy accordingly and choose the best options for your family’s needs.
ALSO READ: How parents can avoid breaking the bank as kids start their academic year
Plan for the long term to ease financial pressure
The road ahead may not always be easy. For example, SchoolHive estimates that the cost of 13 years of primary and high school education will almost double over the next two decades. In 2025, the cost of private high school education is projected to be around R180 100 per year. By 2038, that cost is expected to rise to approximately R333 400.
However, by taking proactive steps now, you can manage these rising costs. Robey emphasises the importance of early planning and says using strategies, such as compound interest and saving can significantly reduce the financial strain in the long term.
“The most important step is to take action… A clear long-term financial strategy will not only reduce stress but also give you confidence that you are on track to meet your child’s educational needs, no matter what challenges arise.”
