January's reckoning: the back-to-school financial assault you didn't budget for

YOU'RE basking in the festive glow, managing your bonus with newfound discipline, perhaps even feeling proud of your spending restraint. But while you're congratulating yourself, the rest of January is quietly sharpening its knives. The back-to-school financial assault is coming, and most parents are criminally unprepared.

The numbers don't lie: what's waiting for you

Private school fees increased by an average of 6.9% for 2025, with some institutions hiking fees by as much as 7.9%. From Crèche to Cap and Gown in most private schools - more than double the November 2024 inflation rate of 2.9% (official inflation rate while the actual being experienced by you and I are substantially higher).

For private school parents, the total cost of raising a child through private education now ranges between R2.5 million and R4 million over their full school journey according to Joburg ETC. Even public schooling costs approximately R651.313 from Grade 1 to matric, with annual government high school fees reaching R36.072.

The brutal reality: South African salaries increased by merely 1% over the past seven years, while inflation surged by 40% as reported by BusinessTech.

School fees climb faster than your income. The mathematics is unsustainable. Transport costs compound this assault. While government announced an R870 monthly school transport allowance for qualifying low-income families starting January 2025, most middle-class parents receive no relief. Many households spend R1 200 or more monthly per child on transport alone.

The hidden costs nobody warns you

about

Parents budget for fees, uniforms, and stationery. What they don't anticipate: textbooks at R300 to R500 each across seven subjects, mandatory tablets for digital learning, sports equipment not on the "official" list, increased taxi fares, and extra lessons because everyone else's child has a tutor – the “in thing” at the moment. These hidden costs easily double your anticipated budget. They all arrive simultaneously in January – when you're recovering from December spending, managing reduced cash flow, and navigating the longest pay cycle of the year.

Act now: your Jan-u-worry action plan

Ring-fence school money today: right now – open your banking app. Calculate exactly what you need for the whole of January: fees, uniforms, stationery, textbooks, transport. Transfer that amount into a separate savings account. Make it difficult to access. Treat it as already spent. This is a survival strategy for normal humans who know and have understood December's gravitational pull toward overspending. Money you separate today won't be available to "borrow" tomorrow.

Apply for fee exemptions: if school fees exceed 10% of your income, you qualify for full exemption; if less than 10%, you qualify for partial exemption on a graded scale according to an article on Moneyweb written by Anathi Madubela. Schools granted between R7.4 billion and R10.8 billion in exemptions in 2025 – this is your legal right under the South African Schools Act. Complete applications this week if you can while everyone is still trying to get out of their holiday spirits. January brings administrative chaos; earlier applications get processed first.

Source second-hand requirements now: January is a prime time for second-hand uniform sales and textbook exchanges. Parents are selling now, before desperate buyers pay premium prices. Join school parent WhatsApp groups and check community marketplace listings. A blazer that fits is a blazer that fits. Your child's education quality doesn't diminish because their textbook has someone else's highlighter marks. Overcome pride now. 

Negotiate payment terms: many schools offer quarterly payment plans, sibling discounts, or extended arrangements for families experiencing hardship. This is a strategic negotiation time – before the return to school or the end of January's overwhelm. Contact the bursar this week (they return to school before school officially opens). Present a realistic payment proposal. Schools prefer structured agreements to non-payment and legal action.

For the self-employed and business owner

Festive business dynamics create unique challenges. You're managing personal school obligations while anticipating staff salary advance requests for their children's education. If business income is strong, allocate funds immediately to a separate account for January school expenses. This money is untouchable – not for operations, inventory, or "temporary" borrowing. Considera a structured salary advance policies now. Define clear terms: maximum amounts, repayment periods (three to six months), and documentation requirements. This demonstrates care while protecting cash flow.

The uncomfortable conversation

Not every expensive school delivers proportionate value. School fees have risen at CPI plus 2.6% annually since 2012, consistently outpacing inflation and salary growth. If you're sacrificing retirement savings, emergency funds, and family wellbeing for private school enrolment, this is the time for honest analysis. Does this school's performance justify the premium? Are there comparable institutions at lower cost? Asking them earlier than later, when you have time to research alternatives, is infinitely better than asking in March when you're three months behind on fees.

The final word

January's financial pressure is overwhelming because school fees exceed household budgets while reflecting South Africa's broader economic inequality. But you're reading this early in January. You have time that the late or last-minute January's desperate parents won't have. Ring-fence money now. Apply for exemptions before the rush. Source second-hand items at reasonable prices. Negotiate payment terms from foresight rather than desperation.

Your priority isn't just surviving the festive season's spending – it's preparing for January's back to school reckoning. Every rand you protect now is a rand available for school fees later. Getting back to school is coming. It brings school fees that increased 6.9% while your salary increased 1%. The longest month of the year has just started, but festivities continue. Choose wisely. Your children's education matters. So does eating in February. Prepare accordingly.

Sanjith Hannuman is the managing director of Avinash Consultants & Actuaries.

** The views expressed do not necessarily reflect the views of IOL or Independent Media. 

THE POST