New data shows that many parents in South Africa face heightened financial stress in January as they have to afford back-to-school expenses on the back of the festive season – while the majority are concerned about affording school fees for 2024.

This is according to a survey conducted by 1Life, an investment and insurance company, which showed over 50%of consumers don’t save for back-to-school expenses.

Additionally, close to 90% of consumers will have to cut back on expenses to cover these expenses, and the majority of consumers end up using their January salaries to cover these expenses.

Speaking to eNCA, Money Coach and facilitator at 1Life’s Truth About Money, Hayley Parry noted that a lot of parents are financially stressed right now.

“For parents, along with the certainty of death and taxes, children are going to need school uniforms and stationery in January – especially for those with kids who are still growing,” she said.

“So back-to-school necessities are not an unexpected expense, but on the back of the immense financial pressures many South Africans have been under for the past two years, it comes as no surprise that parents are struggling,” she added.

She said the concern for January’s finances is compounded by what she called a festive season hangover, where parents have overspent in December 2023.

“This is a double whammy for parents who have these additional school expenses coupled with depleted lines of credit or no savings – creating a perfect storm for financial stress,” said Parry.

Reports conducted over the past two years showed that school fees become an increasing concern for parents, as rampant inflation and a growing unemployment rate put consumers under financial pressure.

This sustained environment meant that parents often prioritised paying other categories of consumer credit such as mortgages or rent, credit facilities, secured credit and even unsecured credit rather than their children’s school fees.

Michelle Dickens, chief executive of TPN Credit Bureau, noted that this is especially true for parents starting a new year.

“Payment of school fees is cyclical in nature, with the fourth quarter of every year typically representing the highest proportion of fees paid.

“This is likely due to the fact that some schools withhold report cards until fees have been fully paid up or because parents receive bonuses and use this income to settle school fee arrears,” he said.

Parry further noted that 1Life’s survey seems to hint at this concern of affordability continuing into 2024, with 65% of parents surveyed very worried about paying school fees in general, let alone just the back-to-school expenses.

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