As schools open this week, families under financial pressure are being urged to plan carefully and budget with discipline to manage education costs without derailing their long-term financial goals.
JustMoney advises that affording quality schooling is less about last-minute scrambling and more about deliberate preparation well in advance, particularly for households already juggling debt and rising living expenses.
The financial services provider noted that education remains one of the most important investments a family can make, but said the cumulative cost of school fees, uniforms, textbooks, transport, sports, extra lessons and related activities can quickly overwhelm household budgets.
With debt a widespread reality, JustMoney said families need to think strategically about education spending. Its recent Money & Me survey found that more than a third of South Africans spend up to 40% of their take-home income on debt repayments, leaving little room for unexpected expenses.
The survey also highlighted the strain on basic household needs. If given R1 000, three-quarters of women and 67% of men said they would spend it on groceries, while only 15% said they would allocate the money to paying off debt, bills, school expenses or saving.
According to Sarah Nicholson, head of customer experience at JustMoney, the rising cost of education is adding to the pressure many households already face.
“The cost of education can be daunting, but planning helps reduce the pressure, especially at a time when many households are already under financial strain,” she said.
Nicholson added that families who start preparing earlier are less likely to rely on debt to fund schooling.
Nationwide schooling costs
Rising schooling costs continue to place pressure on households across all income groups, despite education inflation easing slightly in 2025.
Statistics South Africa’s 2023 General Household Survey recorded about 15.4 million school learners nationwide. Among those who dropped out before the age of 18, poor academic performance was cited as the main reason (29.1%), followed by a lack of money (19.5%), highlighting the financial barriers many families face in keeping children in school.
Stats SA’s annual education research tracks costs through two measures: an education price index (EPI), which reflects a basket of expenses including school fees, textbooks, uniforms and stationery, and a separate measure focused solely on school fees, covering tuition and levies but excluding additional costs such as transport and uniforms.
The data shows that the overall EPI increased by 4.5% in 2025, while school fees rose by 5%. Although both increases were lower than in the previous year, the pressure on household budgets remains significant.
According to Nicholson, schooling expenses continue to strain budgets across all income groups, reinforcing the need for careful planning and realistic budgeting when it comes to education spending.
What parents can expect to pay
Based on JustMoney’s research, most families choose between government (public) schools, private day schools, and private boarding schools. Online education has also gained popularity since the Covid-19 pandemic.
Government schools are classified into no-fee schools, fee-charging schools, and those serving learners who have disabilities or special needs.
Two-thirds of learners attend no-fee schools, according to Stats SA’s 2023 General Household Survey. This ranges from 87% in Limpopo to 51% in the Western Cape.
Costs for fee-paying schools vary by province and institution, but parents pay, on average, R24 000 a year for primary school and R36 000 for high school.
Fees for Independent/private day schools vary widely. Private primary school fees average R66 000 to R72 000 per year, with high school fees averaging R100 000 to R105 000 per year. Many elite schools charge considerably more.
Annual boarding and school tuition packages at more expensive schools can total well over R200 000 a year, with top-tier institutions charging steep fees.
Michaelhouse boys’ school in KZN charged R392 000 for annual board and tuition in 2025. Their voluntary development levy was R6 470, while their non-refundable acceptance fee was R75 000 for a South African resident, and R196 000 for a non-resident, of which R73 000 was refundable at completion of schooling.
Virtual schools and online programmes offer the freedom of online learning while keeping students on track with a clear, organised curriculum. Qualified educators follow a set timetable, lead live classes, and manage assessments.
According to the admissions team at Teneo online school, 2026 monthly fees for Grade R and Grade 1 are R4 800 per month for live online classes, and R3 800 per month for a mix of live online classes and pre-recorded sessions. Fees cover the full curriculum, access to learning materials, and support from qualified teachers.
School fees made manageable
“Careful planning and disciplined budgeting are essential if education fees and related costs are to align with your family’s financial goals,” says Nicholson, who offers the following tips.
Start with a realistic budget.
List annual school costs for each child: tuition/school fees, uniforms, textbooks and stationery, transport, meals, extra-curricular activities, technology, school trips, extra tutoring, and a contingency sum for unexpected costs.
Spreading school fees over monthly or termly payments can ease pressure on household cash flow and reduce the need to rely on credit during the year.
However, where families can pay annual fees upfront, settling the full amount can be financially worthwhile, as many schools offer discounts for early or lump-sum payments. The best choice depends on your income pattern, savings buffer and ability to absorb high one-off costs without jeopardising day-to-day expenses.
Explore financial support.
Check for bursaries, sibling discounts, and payment plans with the school’s finance office. Note application deadlines and do your homework, as competition can be fierce. Good household records not only help with family budgeting but are handy when you apply for means-tested support.
Cut costs.
Shop for second-hand uniforms and sports equipment, explore shared transport, and evaluate whether private tutoring or additional classes are necessary.
Maximise loyalty points.
Stretch your school budget and support your school by making the most of store and loyalty point programmes.
School-Days®, for example, is a digital platform where you nominate a beneficiary to receive Education Time Points (ETPs), with each ETP valued at R1. Buy, earn, or win ETPs by spending and engaging with platform partners, or through Plan to Pay, a partnership with Standard Bank. Standard Bank UCount Rewards points can be converted into ETPs.
Long-term planning
According to Nicholson, families aiming to build an education fund have several options to consider, including the following.
- Tax-free savings accounts. Open an account for yourself, or in your child’s name, and all investment growth ‒ interest, dividends, and capital gains ‒ is tax exempt. The annual contribution limit is R36 000 per tax year, with a lifetime limit of R500 000.
- Unit trusts/managed funds. These can generate higher returns, but with greater market risk. They best suit those who won’t need the money for several years.
- Fixed-term deposits or notice accounts. These are generally more conservative, with lower risk and returns.
- Insurers’ education savings plans or endowments. These long-term savings products help parents save regularly for school and tertiary costs. You pay set contributions over a fixed term, usually five years or more, and receive a lump sum at maturity. These plans often combine investment growth with life cover, providing financial protection should you die before the policy reaches maturity. Read fee and surrender rules carefully.
“If you’re saving for several children, planning for private or tertiary education, or considering offshore education options, it’s advisable to consult a qualified financial planner who understands education funding and the South African tax and regulatory environment,” she says.
