Start with the real cost, not the hopeful one
Education funding often begins with a vague promise of “we will sort it out later”, then later arrives with registration fees, residence deposits, books, devices and transport all asking for money at once. In South Africa, the real cost of study is rarely one number. It changes by campus, province, course length and whether a child stays at home or moves to another city.
A family in Stellenbosch might be budgeting for one child at a Cape Town university and another at a private school in Paarl, while a business owner in Johannesburg is also carrying staff payroll and business tax commitments. That is why education planning should start with a practical estimate of annual cost, then work backwards from what the family can actually fund without putting pressure on retirement saving or short term cash flow. If the plan only works in a perfect year, it is not a plan, it is a hope.
- List tuition, accommodation, books, transport and study devices separately.
- Allow for annual increases, not just today’s fees.
- Keep one buffer for unexpected costs such as repeats, medical items or travel.
Treat study support as part of the full family balance sheet
Many parents want to pay for education out of good intention, but the most useful question is whether that support fits inside the wider family balance sheet. A strong estate plan should consider school fees, retirement provision, debt, business continuity and the needs of a spouse or dependants at the same time. If one area is underfunded, the family may feel generous now but vulnerable later.
This is especially important for entrepreneurs and business owners whose income can rise and fall with trading conditions. A strong quarter can make education support look easy, then a slow season, a VAT payment or an equipment replacement can change the picture fast. The aim is not to stop supporting children, but to structure the support so it is sustainable. That may mean a smaller monthly amount, a once off contribution each year, or a plan that adjusts as income changes.
- Check whether study contributions reduce retirement saving below a safe level.
- Test the plan against a poor trading year or a sudden medical expense.
- Separate essential commitments from discretionary gifts so priorities stay clear.
Use the right ownership structure for the right purpose
When study support is linked to broader wealth planning, the structure matters. Money earmarked for future education may sit in a family investment plan, inside a trust, or as part of a larger estate strategy depending on the family’s needs and the age of the children. The right answer is never the same for every household, because tax, control and flexibility all need to be weighed carefully.
Trusts can help where there is a need to protect capital and guide how funds are used, especially in blended families or where children are still young. Direct ownership may suit families who want simple access and fewer moving parts. A will should also be reviewed so it does not create delay or confusion if a parent dies before the children finish studying. It is better to resolve these details early than leave them for a time of grief and admin.
For families with assets in more than one city, such as a home in Durban and a business interest in Cape Town, coordination is even more important. A clear structure can reduce friction when fees must be paid on time and records must be available quickly.
Build flexibility into the education plan
Education funding works best when it can breathe. A child may change course, take a gap year, study part time, or move into an apprenticeship or business route. Planning only for one path can cause unnecessary stress if the child’s journey changes. Flexibility keeps the family steady and gives the young person room to make real choices.
One useful method is to set a funding ceiling and then decide how much of that amount is guaranteed, and how much is conditional on performance, need or available family cash flow. This can be explained clearly in family meetings so nobody assumes there is an open cheque. The point is not to control a child’s future but to support it with structure.
- Decide whether funding is for fees only or for broader living costs too.
- Agree on the rules for repeat subjects, course changes and overseas study.
- Review the plan every 12 months or when the family’s income changes materially.
A local example from the Western Cape
Consider a Stellenbosch family running a small manufacturing business with property income on the side. Their eldest child is due to start university in Cape Town, while a younger child is still in high school in Somerset West. The parents want to fund study costs, but they also need to protect retirement savings, keep business cash available for slow months and make sure the surviving spouse will not struggle if one of them dies unexpectedly.
The solution in this kind of situation is usually layered. They map all likely study costs, separate them from household living expenses, then review the will, trust documents and business succession points together. They may decide to use a dedicated savings pot for the first two years of study, then top up from annual income after that. They also set a family rule that education support will be reviewed after each academic year, not assumed forever. That gives everyone clarity and reduces emotional pressure when the numbers change.
For many families, this approach feels calmer than trying to guess the future. It also helps adult children understand that support is planned, not unlimited.
Keep the conversation practical, not emotional
Education funding can become loaded with hope, pride and fear, which is why the family conversation matters as much as the numbers. Children need to know what is covered and what is not. Parents need to know what they can afford without damaging the rest of the estate. A calm discussion now can prevent awkwardness later, especially when more than one child is involved or when a business is being passed on over time.
Useful meetings are short, clear and based on facts. Bring the latest fees, the household budget and the current estate plan. Keep the conversation focused on what is sustainable this year and what must be revisited next year. That way, education support becomes part of a thoughtful family plan, not a source of tension. A little structure now can save a lot of confusion later on.
- Put the agreed funding rules in writing so everyone works from the same understanding.
- Review beneficiary nominations and liquidity so study costs can be met if something happens to a parent.
- Make sure the plan works in both strong years and tighter years.
