The start of the academic year often brings financial challenges for families, but the rising cost of education is stretching household budgets even further. Over the last decade, school fees have consistently grown faster than inflation, adding significant strain to already tight finances.
This is according to Sebastien Alexanderson, who said a report by the South African Reserve Bank (SARB) reveals that school fees have increased by an average of 2.6% above inflation annually since 2012. Key drivers cited include above-inflation teacher salary increases, higher municipal rates, and a growing number of fee defaults, which shift financial pressure onto paying families.
“Education costs are rising at an unsustainable rate compared to stagnant household incomes,” notes Alexanderson. Over the past seven years, South African salaries have only risen by 1%, while inflation has surged by 40%, eroding real purchasing power.
“This widening gap between rising fees and stagnant incomes forces families into tough financial decisions and, in many cases, increases reliance on debt,” Alexanderson explains.
Even as general inflation cools—reaching a three-year low of 2.9% in November 2024—school fees continue to climb.
Some private schools have already announced fee hikes of around 7.5%, consistent with SARB’s projection of a 7.7% rise in school fees. Public schools, too, are adjusting their fees in response to rising operational costs, with increases ranging from 5% to 8%, according to the Federation of School Governing Bodies.
“These increases are creating a steady rise in bad debts and fee exemptions,” Alexanderson adds. “More families are struggling to meet their obligations, especially under the financial strain of the current economic climate.”
To help families navigate these rising costs, Alexanderson suggests the following:
- Explore Financial Aid and Scholarships: Many institutions offer bursaries or scholarships based on academics, athletics, or financial need.
- Discuss Payment Options with Schools: Open a dialogue to explore payment plans, early payment discounts, or sibling discounts.
- Cut Back on Non-Essentials: Review monthly spending and prioritise essentials over luxury items or frequent dining out.
- Seek Professional Advice: If balancing education costs with other financial obligations is overwhelming, consult a financial advisor or debt counsellor.
“Planning and budgeting are critical to managing these rising costs,” Alexanderson advises. “By being proactive and seeking assistance where necessary, families can avoid falling into debt and secure quality education for their children.”
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