Easing the Pain

By Brendan Peacock

Now is the time for parents to consider saving for their children's education - even if the baby hasn't yet been born, writes Brendan Peacock 

Parents of school children know that yearly increases in school fees outstrip inflation. In fact, Stats SA figures show that inflation in education has overtaken the general consumer price index by 3% over the last decade, and 4% on average over the last two years. With the cost of education rising at around 10% a year - which probably tops any pay increase the average salary earner will receive - it makes sense to find the smartest way to get the necessary together.

The Old Mutual Savings Monitor found at the end of 2010 that 54% of working-class parents in metropolitan areas claimed to be saving for their children's education and 32% said they had a formal education policy.

Carmen has a son about to begin a BSc in engineering at Wits, and a daughter in primary school. Carmen paid the 2011 fees for her daughter upfront to earn the 15% discount applicable at the primary school. She paid R8457.50 excluding the cost of workbooks, textbooks, uniforms, sports equipment, transport and school trips. And then there's the after-school care of R890 a month - already discounted by 10% for paying at the beginning of the year.

Luckily, Carmen's son won a partial scholarship from a company for two years of the four-year BSc degree - the first year of which costs R26020 to R31930, depending on specialisation. Again, this excludes books and equipment. 

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