Why financial compatibility is the new relationship green flag

Money doesn’t just influence what you can afford – it shapes how you build a life together. In fact, financial stress continues to be one of the most significant sources of tension in relationships. Understanding your partner’s approach to spending, saving and planning can dramatically improve not just your financial future, but also your emotional connection.

“Your money habits are part of who you are,” says Stian De Witt, CFP®, Executive Head of Financial Planning at advisory firm NMG Benefits. “When partners understand each other’s financial mindset - whether one’s a saver and the other’s a natural spender, they’re better equipped to make decisions that support both the relationship and their long-term goals. It’s not about agreeing on everything; it’s about creating clarity, fairness, and a shared direction.”

Start with the basics: your financial personalities.

Every couple has their own blend of money habits. One partner may love budgeting, while the other might be more carefree with spending. These differences don’t have to cause conflict - but failing to talk about them often does. Understanding each other’s financial personality creates space for more aligned decisions, from daily budgeting to long-term planning.

Build a foundation for stability.

Healthy relationships thrive on structure, and that includes financial structure. Agreeing on how you’ll manage income, split expenses, and handle financial admin helps avoid resentment and ensures both partners feel seen and respected. A fair system leads to fewer arguments and more teamwork.

Create shared goals that excite you both.

Whether it’s a dream trip, a first home, or planning for a future family, shared financial goals bring couples closer. When you plan together, you’re not just talking about money - you’re talking about your hopes, timelines and priorities. This promotes deeper communication and a stronger bond.

Financial transparency builds trust

Financial infidelity can be as damaging as emotional infidelity. Transparency creates trust. When partners plan together, set goals together, and openly share financial realities, it becomes easier to stay aligned and avoid surprises.

Navigate life’s transitions as a team

Life changes - new jobs, relocations, kids, changing priorities- all come with financial implications. Regular check-ins help couples adjust their goals, stay on track and support each other through each stage. These conversations strengthen the connection and ensure both partners feel secure.

“At the end of the day, money isn’t just about rands and cents, it’s about shared dreams,” says De Witt. “When couples take the time to understand each other’s financial habits, they’re not just planning for financial success. They’re investing in the success of their relationship.”

How employee debt is actively eroding SA' workplace productivity

South Africa’s employee wellness challenge is a daily operational risk. Debt stress is now so widespread and acute that it is actively eroding productivity, attendance, and workplace engagement. And the data is sobering: across one employer group of 3,000 people recently assessed by advisory firm NMG Benefits, employees were carrying over 15,000 active debt accounts. More than half of these were in arrears, with the outstanding amount totalling R881 million.

Further, NMG’s Employee Benefit Index research shows that employees spend up to 80% of their salary within the first five days of the month, leaving more than three weeks unsupported.

“When you see numbers like these, you have to accept that financial distress is not a personal failing,” says Lettesha Pillay, Head of Business Development at NMG Benefits. “Rather, it is systemic and structural.”

The behavioural effects are immediate. In one NMG survey, employees were asked whether they would prefer to receive R1,000 today instead of a larger amount in 12 months, and a significant majority chose the immediate payout. “This is a mindset of crisis. People are not choosing badly. They are simply trying to cope,” says Pillay.

Recognising this, NMG developed its Employee Benefit Index: a data-driven diagnostic analysis that gives employers a grounded understanding of their individual workforce’s financial, emotional and physical wellbeing. The Index draws on anonymised financial records, medical scheme insights, employee assistance programme usage, payroll trends, and employee survey results. It then produces an employer-specific wellbeing score and a breakdown of the root causes affecting workforce stability.

“The power of the Index is that it gives leaders clarity on how to act,” explains Pillay. “Financial wellbeing is often the lever with the fastest measurable impact, but it has to be tailored to a workforce’s actual realities.”

Those realities are often hidden costs and leakages. In one employer group, NMG identified R6.8 million in prescribed debt that should have been written off but was still being pursued. In another, employees were paying flat-rate credit life premiums that did not decrease as their balances reduced, meaning that they were overpaying for shrinking risk.

These Index insights are what shape NMG’s SalarySaver programme; a solution designed to tackle the biggest, most damaging financial drains head-on. One of the most common issues NMG uncovers is the ‘stacking’ of funeral policies, where employees paying for multiple policies, each with its own fees and commissions. SalarySaver consolidates these into a single policy that covers the main member’s immediate and extended family, significantly lowering monthly premiums.

Another major source of pressure is the proliferation of garnishee orders, many of which, says Pillay, “do not comply with jurisdictional requirements or stem from responsible lending”. SalarySaver’s financial professionals negotiate with creditors to reduce or remove interest and fees and to discount capital wherever possible.

The impact is measurable. “On average, we have saved 40-50% on employees’ monthly insurance and debt costs since making SalarySaver available,” says Pillay. “This, in turn, has helped plug the 23% decline in employee effectiveness caused by financial stress.”

SalarySaver also includes a first-of-its-kind retirement annuity that accepts variable monthly contributions – a realistic structure that enables employees benefitting from savings to start investing in their futures.

“Every employer group has a completely different set of pressures and levers,” Pillay emphasises. “If you do not understand your workforce at a granular level, you cannot provide practical assistance. You also cannot protect your business from the operational impact of their financial stress. This is where our Employee Benefit Index, combined with SalarySaver implementation, provides a solid base for meaningful change.”

How to manage your first pay cheque to retirement

For many women, the path from receiving a first salary to securing a comfortable retirement can feel like a long uphill journey. Factors like the gender pay gap, single parenthood and extended family responsibilities, and potential career breaks due to motherhood, compound how difficult it can be to save and invest for future financial stability.

Natasha Huggett-Henchie, Consulting Actuary at financial advisory firm NMG Benefits, says that seeing where you want to be at retirement age, and then being disciplined about what it will take to get there, are crucial. “Ideally, your very first pay cheque should also be the source of your very first saving contribution. The key is to make the commitment when you start working, so that you become accustomed to not even seeing the money that you are putting into your savings.”

Why is this early start so important? The answer is simple: compound growth. The first rand you invest can be the biggest by the time you retire. Setting up a debit order that moves 10% to 15% of every pay cheque into a secure retirement savings vehicle is a commitment that will stand you in good stead down the line.

Managing debt is another crucial step. Huggett-Henchie recommends paying off high-interest debt, such as student loans or credit cards, and then redirecting those monthly payments into your retirement fund. And then, there is the emergency fund every woman should have. Always having enough money set aside to cover at least three months’ living expenses provides a buffer against unexpected costs like urgent car or home repairs, or medical emergencies.

Insurance also plays a critical role in protecting your financial independence. While many South Africans hold multiple funeral policies, Huggett-Henchie cautions that this can be unnecessary and expensive. “There are more efficient ways to cover your immediate family, which can significantly reduce premiums,” she explains. Further, income protection and disability cover guard against the risk of being unable to earn an income due to temporary or permanent illness or disability. And again, the sooner you start, the better off you will be. “The younger you are when you take out this kind of cover, the less expensive it is – and you are protected against possible exclusions due to ill health if you apply later in life.”

As you progress, investing wisely is like packing the right supplies for the journey ahead. Unit trusts offer a good starting point, allowing for steady accumulation of wealth with manageable risk. The trick? Start small and increase contributions as your financial situation improves.

Huggett-Henchie also advises that women avoid delegating investment and financial decisions to their partners. Practical steps for being informed and involved include maintaining individual bank accounts alongside a joint household account, and discussing shared finances. Having an antenuptial contract with accrual is another key measure. This protects your personal assets and savings, especially in the event of divorce or financial challenges relating to self-owned businesses.

Throughout this process, working with a trusted financial adviser is like travelling with an experienced guide. A professional adviser can help you navigate savings, investments, insurance, and estate planning. Building a long-term relationship with an adviser ensures your financial roadmap is continuously optimised for your changing needs and life stages.

Finally, creating a legal will is a vital milestone on your journey. It ensures your estate is handled according to your wishes and provides certainty and protection for your loved ones.

The road to retirement is rarely smooth. It involves crossing bridges, navigating detours and, occasionally, repacking your suitcase to lighten the load. But, setting a clear course early, saving every month, and seeking expert guidance, women can steadily advance towards being able to enjoy a secure and dignified retirement, say Huggett-Henchie

Closing the retirement savings gap

South Africans have a retirement savings problem. Research shows that only six out of every 100 South Africans will be able to retire comfortably. On top of that, Deloitte reports our national savings rate is just 0.5%; far lower than most emerging economies. In other words, many of us are heading towards retirement with too little put away.

For women, the challenge is compounded by the gender pay gap. South African women typically earn 23% to 35% less than men for the same work, all while juggling similar bills, debt, and family responsibilities.

“It’s a double hit,” says Natasha Huggett-Henchie, Consulting Actuary at financial advisory firm NMG Benefits. “You’re working with less income from the start, which makes it harder to save, but you also need your retirement savings to stretch further because women tend to live longer than men.”

So, how can women start turning the tide? Here’s a practical, do-able plan to help you close the gap and build a stronger retirement future.

Make retirement saving non-negotiable: Treat your future self like you’d treat an essential household bill. “Building your retirement fund is a lifelong project,” says Huggett-Henchie. “The earlier you start, the more time your money has to grow. Even if it’s tough now, commit to making saving for your retirement part of your monthly budget.”

Increase your contributions; even a little helps: The biggest reason people fall short at retirement is simple: they didn’t save enough during their working years. Review your budget line-by-line and see where you can trim back. Even a small increase in your monthly contributions today can add up to a significant boost in 20 years’ time.

Audit your expenses and cut the waste: Be honest about where your money goes. Many of us have subscriptions we never use or habits that quietly drain cash. By cancelling what you don’t need or swapping to cheaper options, you can redirect that money into your retirement fund. Your future self will thank you.

Take the driver’s seat in family finances: Far too often, women leave the bigger money decisions to their spouse or partner. Huggett-Henchie believes this is a mistake: “Know where the money comes from, where it’s going, and how much is being saved. Always know the current state of your financial affairs and review your insurance arrangements and retirement benefits at least annually. Financial awareness is power – and protection.”

Get expert advice: Putting money away is a great start, but a qualified financial adviser can help you make it work harder. They’ll assess your goals, suggest tax-smart strategies, and ensure your investments are right for your timeline and risk tolerance.

Maximise tax efficiency: The SA Revenue Service (SARS) gives you an annual gift of a tax deduction on your retirement funding contributions. Use it don’t lose it! For example, if you earn R270,000 per annum and you contribute 10% (R27,5000) to a retirement fund per annum, you could get back R7,150 (26%) when you submit your annual tax return the following year. Or if you do this via a payroll deduction, you get it back immediately. Therefore, for every R1,000 you contribute, it’s the same as SARS contributing R260 for you and you contributing only R740. But the full R1,000 plus investment growth is credited to your retirement fund for when you ultimately retire.

Adapt according to your life stage: We know that there is a time when we are all particularly financially stretched which is when we have kids to support. It’s OK to reduce (but not Stop!!) your contributions to a retirement fund during this time. However, when you are through the chaos, you have to “pay back the money” and really go all in with maximising your contributions in your last 15 years of working to make a difference.

The reality check

Many of us imagine retirement as a time to relax but, without enough savings, it can bring financial stress instead. “For women especially, retiring earlier than expected or without a plan can mean relying on relatives to make ends meet,” says Huggett-Henchie. “A well-structured retirement plan can reduce that risk and give you more independence in later life. Closing the gender gap in retirement savings isn’t just about numbers. It’s about giving yourself the freedom to live your later years on your own terms.”

Why single parents cannot afford to put off writing a will

More than 85% of South Africans do not have a will, and five out of six estates registered at the Master of the High Court in Pretoria are not executable because they are not legally compliant. According to the FSSCA (Financial Services Sector Conduct Authority) 5 million single mothers are not leaving guardianship instructions for their children, and more than 60% of children born in South Africa does not have a father on their birth certificate. Lastly, 8.7 million homeowners and 5.4 million car owners not ensuring that their assets are distributed according to their wishes.

Stian de Witt, CFP®,  Executive Head of Financial Planning at advisory firm NMG Benefits, explains that if someone dies intestate (without a valid will) their estate is wound up by the State, and this can be a slow and complicated process, with outcomes that may not reflect the deceased’s wishes – especially when they are survived by minor children: “Children may not be financially protected, or someone you did not choose may end up being responsible for their care.”

Five essentials every single parent should know

1. Drawing up a will is simple: Essentially, you must be of sound mind, over the age of 16, and sign your will in the presence of two witnesses who are not beneficiaries. NMG Benefits provides an easy, free, online platform where you can write a will, update it any time, and safely save it for when it is needed.

2. Update your will regularly: Life changes quickly, and an outdated document can lead to conflict. If you marry, have another child, or an intended beneficiary passes away, you should update your will.

3. Choose your executor carefully: Your executor ensures your debts are paid and assets distributed. It is vital to nominate someone you trust, and who can navigate the legal and financial process. If you do not name an executor, the Master of the High Court will appoint one, and this person might not carry out your wishes.

4. Form a trust for minor children: If your children are under 18 and you die without a will, the assets you leave for them will likely be managed by the state’s Guardian’s Fund, and the outcome may not be as beneficial as you would have wished. However, setting up a testamentary trust in your will allows a trustee whom you nominate to manage the inheritance in line with your wishes until your children reach an age you determine. “We always advise our clients to work with our legal professionals to ensure this aspect is watertight,” says de Witt.

5. Communicate your wishes
A will only works if your loved ones know it exists and where to find it. Talk to your family about your intentions and store the document in a safe, accessible place.  “A will is there to make life easier for the loved ones left behind”, de Witt says.

A will is a legal document setting out how assets, debts, and guardianship of minor children should be handled after death. It forms part of your overall estate planning, but proper planning takes a broader view by structuring assets like pension funds, life insurance policies, and investments in the most efficient way to protect and transfer wealth to beneficiaries. Some kinds of investments and policies have their own beneficiary nominations, which are guided by the law, and which override your will. If you do not update these documents after major life changes, these benefits may end up being paid out to the wrong individuals.

“While anyone can draft a will, professional guidance helps avoid costly mistakes and, for single parents, the stakes are especially high,” says de Witt. “Your will is a safeguard for your children’s future and a way of protecting the legacy you are working so hard to build. Working with a Certified Financial Planner® will help ensure your wishes are carried out after you pass away.”

The modern woman's guide to building wealth

For many women, investing is one of those ‘I’ll get to it later’ items on life’s to-do list, somewhere after putting food on the table today, paying next month’s bills, and saving for next year’s school fees. But, delaying investing now can mean delaying your financial independence later in life. And women simply can’t afford to do that.

This is according to Raazia Ganie, Executive Head: Investments at advisory firm NMG Benefits: “We’re seeing that women are increasingly the decision-makers in their households. This makes it more important than ever for women to be financially literate and empowered.”

The truth is that investing well begins long before you start a retirement fund, or buy your first share or unit trust. It starts with budgeting. “Many households set aside little silos of money. One for bills, one for emergencies, and one for ‘spoils’ like holidays. This is the foundation of good financial planning,” Ganie explains.

Without this discipline, lifestyle spending can creep up. The allure of credit cards, deals on things we don’t really need, and ‘buy now, pay later’ offers is real. Used wisely, these tools can help with essential purchases or emergencies. Misused, they can quickly spiral into debt. “A credit card is essentially a loan at a very high interest rate,” Ganie cautions. “If you pay it off in full during the interest-free period, it can work in your favour. But outside of that, it becomes expensive and paying it off (which is the right thing to do) may mean that there isn’t much money left to invest.”

Too often, women view insurance as a grudge purchase. Ganie urges a mindset shift. “Short-term insurance is an investment in your financial wellbeing. You may not see a tangible benefit every month, but when life throws you a curveball, like a car accident or a burst geyser, you’ll be grateful you’re covered.”

When it comes to long-term insurance, a vision of how you want to live when you retire and how you want to provide for your family after you’ve passed on, combined with advice from an accredited financial planner and disciplined investing, are essential.

The good news? Investing has never been more accessible. Many platforms and bank-linked apps now let you invest small amounts – less than a hundred rand a month into the stock market. “You don’t need thousands upfront. Small, consistent investments compound over time, and grows quietly in the background,” says Ganie.

This wisdom applies to retirement savings as well. And, for those women who’ve been saving diligently for when they go on pension, withdrawing the ‘savings pot’ from their retirement funds offers an alternative way to pay off high interest-bearing debt and for genuine emergencies where all other avenues have been exhausted. This is particularly relevant when interest rates are higher than the returns available on your retirement fund.

Perhaps the most important investing tip for women is to stay informed. Whether you’re the one currently managing the household budget or not, life circumstances change. At some point, every woman will need to take charge of her finances, and the importance of partnering with a financial adviser at every life stage can’t be over-stated.

Ultimately, investing as a modern woman shouldn’t be about giving up the joys of traveling or occasional spoils. It’s about balance. “Build the financial foundation first and then you can enjoy life’s luxuries. When your debts are paid off and you’re investing regularly into your future, you and family can live without stressing about what’s to come. That’s the real power of investing as a woman today,” says Ganie.

South Africa’s workforce is drowning in debt: Here’s how employers can help

According to Stats SA, April 2025 saw more than 26,000 debt-ridden South Africans being summoned to appear in court. While this is a slight decrease from the first three months of the year, R30.2 million (12%) of the debt against which this action was taken is for rent – a basic necessity.

SA Reserve Bank figures show the outstanding balance of household debt growing at an average annual rate of 5.2% from 2015 to 2022. And, Experian reports that vehicle finance accounts in default rose by 31% from March to June 2024 alone. 

Lettesha Pillay, Head of Business Development at advisory firm NMG Benefits, says this financial distress is the norm rather than the exception. Data from DebtBusters supports this: the most vulnerable consumers, taking home R5,000 or less per month, use 76% of their income to repay debt, and those earning R35,000 or more spend 77% servicing debt.

Pillay says that South Africa’s financial stress landscape is different from other countries. “Strained household finances stem from endemic unemployment that often pressures households budgets even if there is one breadwinner. It is compounded by soaring living costs. Multiplied by dealing with medical and other emergencies. And rooted in a lack of basic financial education.”

It thus critical for employers that wish to better support their workforce, to partner with local experts who understand the nuances of our economy and workforce behaviour.

However, Pillay notes that many employers are at a loss on where to start and understandably so. Money brings up a lot of emotions, including fear, guilt, and shame, and NMG case studies show that employees fear judgment and career repercussions if their employers learn the extent of their over-indebtedness. They are unlikely to open up unless they feel safe and protected; confidentiality and trust are crucial. All of which makes one-on-one, anonymised, confidential interaction essential for driving real behaviour change.

As a leading financial advisory expert and employee benefits provider, NMG does not impose untested programmes on the employer groups that it works with. A case in point: they rolled out a financial support solution called SalarySaver in-house, and quantified its success, before adding it to their offering.

“NMG SalarySaver goes far beyond surface-level budgeting advice,” says Pillay. “It tackles the root causes of financial distress with practical support that’s scalable, sustainable, and measurable.” The programme targets the high-impact areas of the “systematic drains” on employees’ salaries:

SalarySaver’s financial professionals help employees consolidate multiple funeral and credit life policies into a single, more affordable and more beneficial policy, often saving hundreds of rands a month. Debt restructuring is a major focus area, and the programme has helped employees move from exploitative short-term loans to affordable credit solutions with a total cost of credit (TCOC) of 15%–19%, resulting in meaningful monthly savings. Wherever possible, SalarySaver steps in when it comes to managing garnishee orders, along with accessing responsible salary advances. For those starting to save, it also includes access to an innovative, flexible retirement annuity, into which employees can direct any savings – even if the amount differs from month to month.

SalarySaver empowers employees to crush debt, optimise insurance, unlock savings, and auto-fund their futures, at no personal cost, while employers get aggregate data to track improvements in workforce wellness.

“On average, we’ve saved 40%-50% on employees’ monthly insurance and debt costs since making SalarySaver available,” says Pillay. “This in turn has helped plug the 23% (average) drainage in employee effectiveness caused by financial stress. By turning take-home pay into long-term wealth, SalarySaver is a true financial transformation model.”

Money Smart Week: Are South Africans truly building resilient financial futures?

Money Smart Week which takes place from 25th – 31st August 2025, challenges us to consider "Financial Foundations for a Resilient Future." But in a landscape of economic volatility and rapidly escalating living and healthcare costs, how robust are these foundations for the average South African? Are we truly prepared for the financial realities of retirement and the inevitable need for comprehensive healthcare?

NMG Benefits, a leading expert in employee benefits and financial planning, are observing a significant disconnect between current financial behaviours and the long-term imperative of financial resilience, particularly concerning healthcare.

Below are scenarios that our spokespeople can delve into, offering expert advice on the challenges and solutions for building a resilient financial future:

The retirement time bomb: Beyond traditional pension planning, how are escalating healthcare costs silently eroding retirement savings in South Africa, and what proactive measures can individuals take now to mitigate this?

Beyond medical aid: With healthcare inflation consistently outpacing general inflation, what innovative strategies and lesser-known options exist for individuals and families to secure comprehensive healthcare coverage?

The resilient future blueprint: What foundational financial habits and planning tools, if adopted today, can genuinely future-proof South Africans against economic shocks, health crises, and ensure a dignified retirement?

Bridging the knowledge gap: How can we empower younger generations to prioritise financial planning and healthcare savings now, ensuring they build a genuinely resilient future from the outset?

Please let me know if you would be interested in interviewing Stian de Witt, head of financial planning at advisory firm, NMG Benefits or Karin Mitchelmore head of healthcare consulting at advisory firm NMG Benefits and I will happily arrange it.

Tips for making the most of your money in tough times

While the good news is that the proposed VAT increase will not be implemented, the not-so-good news is that many South African households will continue to struggle to meet their monthly financial commitments. SARS didn’t find money somewhere that they didn’t know about.  The R16bn Tax deficit that SARS tried to make up with the 0.5% VAT hike was substituted by merely not implementing a PAYE tax bracket increase.  This will be adding R16.3bn to the coffers.  This year the average tax payer will therefore feel the pinch of inflation increases even more in their pockets.  It is estimated that working South Africans spend 62% of their take-home pay on repaying debt, leaving little room for essentials. And, when it comes down to savings, fewer than 10% of working South Africans are adequately prepared for retirement.

Stian de Witt, Executive Head of Financial Planning at financial advisory firm NMG Benefits, says that prioritising savings, even during challenging times, is crucial – and the best way to ‘find’ money to save is to pay off as much as debt as possible.

“Some debt, like home loans and car financing, is hard to pay off in short periods of time, and it is important to include these payments in your monthly budgeting. But paying off other forms of debt, like personal loans, credit cards, and store accounts as quickly as possible should be a priority because of the high interest that is generally charged. Over time, loans, cards, and accounts can end up costing you a lot more than you would think.”

De Witt shares his top five tips for improving your financial wellbeing, starting today:

Track your spending: Review your bank statements, or start using one of the many available free apps to identify unnecessary expenses. Cutting back on impulse purchases or choosing affordable alternatives can free up some cash.

Get savvy with tax: If you have a retirement annuity or a medical aid, ask your employer to deduct these premiums from your before-tax salary, which will reduce your taxable income and boost your monthly take-home pay.

Do not stop saving: Even small savings add up over time. Try using the 50-30-20 rule: allocate 50% of income to needs (rent, groceries), 30% to wants (hobbies, entertainment), and 20% to financial goals (emergency funds, retirement savings).

Manage your debt: Reduce your high-interest debt by consolidating loans and prioritising repayments. Tools like NMG Benefits’ debt calculator can help you to develop a structured payment plan.

If your employer works with NMG Benefits, you have free access to programmes like SalarySaver, which is designed to help you stretch your salary and regain financial stability. SalarySaver addresses common financial pitfalls like stacked funeral policies – where the premiums for multiple overlapping policies drain monthly income – by consolidating your cover into a single, cost-effective policy.

It provides practical, expert-led debt relief. Financial professionals assist with garnishee order disputes, and help you to better manage and short-term emergency loans you might have taken out from predatory lenders, and more. The emotional payoff is also significant: less financial pressure, more peace of mind, and a real sense of empowerment.

“By starting to plan today, consumers can reduce their debt and the stress that it causes, and take steps towards a better financial future. Economic pressures are real, but having the right strategies in place can help everyone make the most of their hard-earned money,” says De Witt.

Seek professional guidance: A financial adviser can help to tailor a budget and plan for your unique situation, ensuring that you make informed decisions and avoid emotional spending mistakes

5 smart ways to prepare financially for your child’s first year of school

Starting ‘big school’ is a major milestone – and not just for your child. It’s also the start of a long-term financial commitment for parents. With the Gauteng Department of Education (GDE) announcing that online admissions for Grades 1 and 8 will open from 24 July to 29 August, and some private schools already accepting enrolments for 2026, now’s the time to start preparing financially for your child’s schooling journey.

“With the right planning and the right school, you can give your child a strong educational foundation,” says Natasha Vellieux, Finance Manager at SPARK Schools. “Once you’ve decided where you want to enrol your child, the next step is to work out how you’re going to pay for it. It’s critical to plan ahead.”

Here are five practical steps to help you get financially ready for your child’s first year of school:

1. Start budgeting now: “It’s never too early to start planning,” says Stian de Witt, Executive Head of Financial Planning at advisory firm NMG Benefits.

De Witt also encourages parents to involve their children in the budgeting conversation early on, using a colourful and memorable system: the three piggy banks. Assign each piggy bank a colour and purpose:

“This system helps children understand the basics of financial discipline, generosity, and delayed gratification - skills that are invaluable in the long term,” says De Witt.

2. Create a school-specific savings plan: De Witt advises parents to include fees, uniforms, aftercare, transport, and stationery in their monthly budgets. “Putting even a small amount of money into a high-interest savings account each month will help when payments are due.”

3. Look for transparency, flexibility, and partnership: Knowing what to expect financially can help you avoid surprises later on, so look for a school that’s open and upfront about its fee structures. Some schools offer monthly payment plans or discounts for paying in full at the start of the year. Another important consideration is a school’s willingness to ‘walk the journey’ with parents and scholars alike.

4. Shop smart for uniforms and supplies: School expenses go way beyond fees. Save by checking second-hand stores and exchanges, and online marketplaces for discounted supplies and ‘gently worn’ uniforms.

5. Prioritise quality, not just price: “A low-fee school may seem cheaper upfront, but you can’t put a price on the quality of the education your children receive,” says Vellieux. “It’s long been perceived that private schools are the only way to go but they can be expensive. Some private school networks now offer this same high-quality education at a more accessible price.”

“In addition, the 21st century requires scholars to possess a mindset and skills for lifelong learning, empowering them to succeed in all aspects of their lives,” says Vellieux.

Look for a school that offers:

Getting your child ready for Grade 1 is about more than enrolling at the closest school, or finding the right uniform. It’s about setting up healthy financial habits to help you consistently pay school fees for the next 12 years. By budgeting early and choosing a school that aligns with your financial situation and educational goals, you’re setting your child – and your wallet - up for long-term success,” says Vellieux.

About SPARK Schools

SPARK Schools is a network of private schools offering affordable, globally competitive education. Concerned by the state of South African education and committed to finding a solution, Stacey Brewer and Ryan Harrison co-founded SPARK Schools in 2012.  They believed that an innovative approach could disrupt the crisis in South African education and dedicated themselves to creating a new model that would provide access to high-quality education for all.  

SPARK Ferndale, the first school in the SPARK Schools network, opened in 2013 in Johannesburg. Since then, the network has expanded to serve more than 17,000 SPARK scholars at 26 schools in Gauteng and the Western Cape. 

SPARK Schools' purpose is to build a nation through high-quality, affordable education. They are society shapers, committed to nurturing scholars who are responsible, persistent, and kind and who positively contribute to South Africa's future.