By Frank Daubenton, CFP ®

When parents talk about sending a child to university, the focus is usually academic. Which institution. Which degree. Which country. The financial discussion often comes later, once acceptance letters arrive and deadlines are tight.

That order creates pressure.

University is one of the largest financial commitments most families will ever make. The decisions taken at this stage can affect cash flow, savings, and long-term security for many years. It deserves the same level of planning as a home purchase or retirement strategy.

Start With the Full Cost, Not Just the Fees

Tuition is only one part of the bill. Whether studying locally or abroad, the real cost includes accommodation, meals, textbooks, transport, technology, insurance, and spending money. These costs rise every year and often faster than inflation.

Locally, parents are often surprised by how quickly residence fees and living costs rival tuition. Internationally, the headline fee is only the beginning. Visas, flights, health cover, currency movements, and holiday travel add up quickly.

A useful discipline is to calculate the annual cost in rands and then multiply it by the expected length of study. That number brings clarity fast.

Paying for Local Studies in South Africa

South African universities offer quality education at a fraction of international prices, but affordability still depends on planning.

Some families rely on savings built up over time. Others fund fees from monthly income. Student loans and bursaries can play a role, but they should be understood clearly before committing. Loan repayments after graduation can delay a young adult’s financial independence.

The key question is not whether local university is cheaper. It is whether it fits comfortably into the family’s broader financial life without sacrificing emergency savings or long-term goals.

The Real Cost of Studying Abroad

International education offers exposure, networks, and experience. It also introduces currency risk.

When fees are priced in dollars, pounds, or euros, a weakening rand can increase costs dramatically from one year to the next. What looks affordable today may feel very different in three years’ time.

Parents should plan for volatility, not hope it will not happen. Building a buffer into the budget and holding some savings offshore can reduce stress. Funding international studies entirely from month-to-month income leaves families exposed.

Another often-overlooked cost is what happens after graduation. If a child returns home, there is no foreign income to offset the foreign expense. If they stay abroad, parents may still be supporting them while they settle.

Avoid Funding Education at the Expense of Your Own Stability

One of the most common mistakes parents make is prioritising education costs over their own financial security. Using retirement savings, taking on excessive debt, or running down emergency reserves creates long-term risk.

Children have time to recover financially. Parents often do not.

A sound rule is this. Education should be funded in a way that preserves the family’s ability to absorb shocks. If a plan only works when everything goes right, it is not a plan.

Involve Your Child in the Financial Reality

University is a natural moment to introduce financial responsibility. This does not mean burdening a teenager with anxiety. It means transparency.

Discuss budgets. Explain trade-offs. Agree on what is covered and what is not. A child who understands the cost of their education is more likely to value it and manage money well later.

Part-time work, scholarships, or contributing to living expenses can be constructive when handled thoughtfully.

The Takeaway

Choosing a university is an emotional decision. Funding it should be a rational one.

Whether the path leads to Cape Town or Cambridge, the financial principles remain the same. Understand the full cost. Plan for increases. Protect your own stability. Make decisions that your future self will thank you for.

Education opens doors. Sound financial planning keeps them open without regret.

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