Counting the cost of private vs public education

South Africa is a country where the debate between private and public education is a hot topic, with many market commentators favoring private education stocks over the public education system. This debate is further complicated by the conflicting issues of cost and quality, which are often at the forefront of discussions at the beginning of the academic year. Zang-ge Mfongong-guang-ge, an independent personal finance consultant, recently joined CNBC Africa to shed some light on the costs of education in South Africa and provide insights on how individuals can navigate the challenges of funding education for their children. Zang-ge highlighted the significant financial burden that comes with providing a child with a quality education, emphasizing that the costs extend beyond just tuition fees. According to a report in the City Press, the total cost of putting a child through schooling from grade R to grade 12 can vary significantly, with average fee-paying schools costing around $250, upper-income model C schools around $670,000, and private schooling as high as $3.7 million. These staggering numbers underscore the need for individuals to plan strategically and utilize investment instruments that align with the long-term financial commitment of educating a child. Traditional education policies, once a popular choice for saving for education, are now being reevaluated due to the changing landscape of educational costs. Zang-ge emphasized the importance of developing tailored strategies for different stages of a child's education, such as a three-year plan for nursery school, a five-year plan for primary school, and a seven-year plan for high school. By diversifying investment strategies and considering options like equities that offer potential high returns, individuals can better position themselves to fund their child's education without solely relying on traditional savings vehicles. One key takeaway from the discussion is the need to shift from short-term planning to a long-term financial strategy that incorporates education funding from the early stages of family planning. Zang-ge stressed the importance of considering not only the immediate costs of schooling but also the future expenses of tertiary education, which may require more sophisticated and globally oriented funding approaches. In a world where traditional schooling paths are being disrupted, it is essential for parents to think ahead and explore alternative funding sources and opportunities for their children's education. When it comes to saving for education, Zang-ge highlighted the importance of exploring both formal and informal saving structures. While informal savings like stock flows can still be viable options, individuals are encouraged to explore alternative funding sources such as company bursaries for higher education. By thinking creatively and considering options like part-time work and studying abroad, parents can navigate the complex landscape of education funding and provide their children with diverse and impactful learning experiences. As the conversation around education costs in South Africa continues to evolve, Zang-ge's insights serve as a valuable resource for individuals looking to make informed decisions about their children's education. By adopting a long-term financial strategy, diversifying investment options, and exploring alternative funding sources, parents can ensure that they are well-equipped to meet the financial demands of providing their children with a quality education in an ever-changing educational landscape.