This also begs the question of how these institutions will survive when the students do not pay their fees. And what about the students who are paying their fees?
Last year, Gugulethu Cele from CNBC Africa, conducted an interview with Chris Pretorius, the wealth manager at Alpha Wealth, and Sydney Sekese, a certified financial planner from the Financial Planner Institute. Chris said the cost estimates for quality school education ranges between R1-million and R7.7-million for a newborn. These figures exclude the costs of text books, sports equipment, food, extra lessons, medical expenses, holidays and clothes.
“Parents need to start early to save for the education of their children. Investments are the way to go and make sure you choose the right one. Seek advice from financial planners. Also be disciplined on your savings, do not overspent,” explained Chris.
Sydney shared the same sentiments as Chris and he emphasised the importance of investments. “Contractual investments are better because you will not be tempted to use the money in case of an emergency,” he said. Also there is Fundisa Fund, an investment that allows parents to save money for the tertiary education of any South African child from a low-income household. The fund has the bonus that the account holders receive each year. This bonus serves as both a reward and encouragement for account holders to continue saving.
Cassandra Stark a former teacher at Forest Hill Primary School said running a school or university is similar to running a household. You can only spend what you have otherwise you will go bankrupt. In order to maintain, fix, upgrade or purchase goods you need an income.
“Our students expect beautiful premises, a place to sit and eat lunch, clean and hygienic premises, working toilets, updated equipment, electricity and secure premises. This all takes money.
“It is logical if only a few students are paying not everything will be maintained, fixed, upgraded or purchased – this will result in that institution deteriorating and a mass exodus of paying students. “These students will then look to the private sector in order to receive a holistic education. Very, very few people are selfless and will sit idly by paying whilst others are not. It is not a trait most humans have,” she said.
Petro Smit, the Robertsham Primary School secretary, said their school fees for 2016 is R8 800 for Grade One to Seven and Grade R school fees is R13 200 per annum. “Should we not receive our school fees, we can close our doors,” noted Petro.
