Run on numbers: understanding the financial burden of raising a child in South Africa
A large portion of the expenses of personal income goes towards education, for those people lucky enough to have an income.
1. Momentum Investo did extensive research into what it costs to raise a child. 'At inflation-related sums, it can cost R550 000 for the first six years, between R640 000 and R880 000 for primary school, and up to R1 million for high school. A three-year degree at a South African university may cost R660,000. These numbers add up to R3 million.' Standard Bank's estimate is much the same. 'Conservative estimates indicate that it can cost around R10,000 per month in today's economy to raise a child, which means that over an 18-year period, factoring price increases, you can expect to spend over R2.5 million.' That is without considering sending the child to university.
2. In 2023, the average annual household income in South Africa was R204,359. This is based on data from Statistics South Africa's Income and Expenditure Survey (IES). It is obvious that the average household cannot afford a child. According to Statsa, 'South African households allocated the majority of their consumption expenditure to four main areas in 2023: housing and utilities, food and non-alcoholic beverages, transport, and insurance and financial services. These categories accounted for 75,6% of total household spending, meaning that three out of every four rand were directed toward these essentials.' These numbers indicate that there is very little left to spend on a child.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
an hour ago
- IOL News
Famous Brand shows financial resilience despite tough year marked by deteriorating infrastructure
Famous Brands, owns Wimpy, Steers and Debonairs among other brands Image: File Famous Brands, Africa's largest restaurant franchisor, reported a resilient financial performance for the year ended 28 February 2025 in its annual report, despite challenging operating conditions marked by a deteriorating infrastructure environment, and cash-strapped consumers. The group, which owns and franchises major South African food brands such as Steers, Wimpy, Debonairs Pizza, Mugg & Bean, and Fishaways, posted a 3.2% rise in revenue to R8.28 billion, up from R8.02 billion the previous year. Operating profit grew by 12.6% to R914 million, while headline earnings per share climbed to 520 cents, from 465 cents in 2024. CEO Darren Hele credited the group's performance to disciplined cost containment, brand resilience, and a robust business model. 'Our financial results are thanks to strong cost control, the enduring appeal of our brands, and the resilience built into our business,' Hele said in the annual report. However, Hele did not shy away from describing the difficulties the company faced. 'South Africa is an increasingly tough market to operate in, with rising costs and failing infrastructure,' he noted. Citing power supply issues, he added that Eskom's electricity tariffs increased by 12.7% in July 2024 and are expected to rise by another 11.3% in July 2025, with future hikes likely. Hele pointed to logistics disruptions at South African ports and poor road conditions as additional threats to operations. 'Delays at ports mean we must hold more stock or source from costlier suppliers to avoid shortages,' he said. 'Infrastructure failures - including potholes and malfunctioning traffic lights - have a knock-on effect on consumer behaviour, leading to reduced late-night foot traffic and earlier dining patterns.' Access to clean, reliable water also emerged as a growing concern. 'Water supply has become increasingly unreliable. We are investing in filtration, recycling, and storage at our plants, particularly where water use is highest,' Hele said. As of year-end, 56% of the group's South African restaurants had secured alternative water solutions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Despite these obstacles, Famous Brands maintained its expansion momentum. Chairperson Chris Boulle praised the resilience of franchise partners who, he said, continued to open and refurbish outlets despite rising electricity, labour, and input costs. Famous Brands has a healthy pipeline of new restaurant openings planned for 2026. He noted the 2025 financial year was characterised by low consumer spending, especially in the first half. To remain competitive, the group made strategic trade-offs, balancing support to franchisees and affordability for customers. This included carefully deciding which supply chain costs to absorb and which to pass on, all while maintaining viable margins across the system. Famous Brands continues to invest in operational efficiency and scalability. A major milestone was the June 2025 opening of a new cold storage facility at the Midrand Campus, a project completed on time and within budget as part of a broader logistics optimisation plan. The group is also focused on modernising its manufacturing plants over the next three years and enhancing its back-end technology to support cost-effective delivery and front-end customer service.
The Citizen
2 hours ago
- The Citizen
Mams author's second book holds powerful insights
Sidney Seromo, also known as Sidney Ke Mmino from Nellmapius, is continuing on his chosen path of helping others along their journeys. He said he dropped out of university and transitioned from a promising football career to entrepreneurship, founding SKM XXIV Ltd in 2016. After the success of his debut book, The Brand Blueprint, he now returns with a bold new release: The Spark of Purpose, launching this month. Speaking to Seromo, he said this transformative second book dives deep into the power of purpose, self-leadership, and vision. 'The book, The Spark of Purpose is a collaborative effort, featuring powerful insights from some of South Africa's most inspiring and influential figures.' These include: Theo Baloyi, founder of Bathu; Thatiso Dube, founder of Galxboy; Alphy Sipho Mkhwanazi, a media personality; Ofentse Thulare, known as 'The Corporate Lepara'; and Ronwen Williams, South African football icon and national team captain of Bafana Bafana. He said together, they share stories of resilience, innovation, and identity that aim to ignite a spark in every reader looking to find their voice and live their calling. 'This book is about more than success – it's about significance,' said Seromo. 'I wanted to create something that inspires people not just to build a brand, but to build a life with direction and purpose.' Seromo's story is proof that with vision, hustle, and heart, anyone can turn their past into power and their ideas into influence. Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading! Stay in the know. Download the Caxton Local News Network App Stay in the know. Download the Caxton Local News Network App here
IOL News
3 hours ago
- IOL News
How the Correctional Services plans to allocate R1. 2 billion for prisoner food provision
The Department of Correctional Services has placed the provision of food for prisoners as one of the top four cost drivers of its budget after compensation of employees, property payments, and public-private partnership support. Image: Timothy Bernard / Independent Newspapers The Department of Correctional Services has allocated R1.2 billion for the provision of food for its more than 100,000 prisoners in the 2025/26 financial year, Minister Pieter Groenewald said. Responding to parliamentary questions from EFF MP Betty Diale, Groenewald said the department spent R1.4 billion on the provision of food on prisoners in 2023/24 financial year. The amount had increased to R1.5 billion in the last financial year that ended in March 2025. 'For the 2025/26 financial year, the department allocated R1,286,972,000 for the provision of nutrition to inmates,' he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading In its 2025-2030 strategic plan, the department places the provision of food for prisoners as one of the top four cost drivers of its budget after compensation of employees, property payments, and public-private partnership support. The document puts the provision for food to the tune of R952,975. Groenewald also said the department planned to maximise the utilisation of the services of the prisoners to produce food for themselves, to enable the department to redirect funds to other essential programmes. He said the prisoners will participate in the production workshops in agriculture to maximise their skills utilisation for bread and agricultural production for their ration. 'The self-sufficiency and sustainability programme in the department is centred around offender development, through the provision of work opportunities to offenders in bakeries and agriculture. Expansion of bakeries and agricultural projects towards an increase in offender skills utilisation for food production,' he said. The department's strategic plan document states that the department wants to become self-sustainable through activities such as those in production workshops, bakeries, agriculture, skills development, formal education and training, as well as through arts and culture. 'The department will expand marketing of production workshops' products and services to other client departments to improve revenue generation.' Meanwhile, Groenewald revealed that the cost per capita per inmate incarcerated for the 2025/26 financial year is R462.13 per day. Asked how his department managed financial implications for imprisonment of foreign nationals, he said there were 13,181 sentenced foreign nationals in prisons as at May 4 this year. 'The total cost to accommodate 13,181 sentenced foreign nationals on 4 May 2025 was R6,091,335.53 per day.' He stated that foreign national prisoners were not a separate category of inmates. Groenewald added that there were currently no bilateral agreements with neighbouring countries to transfer sentenced foreign national prisoners to serve in their countries of origin. 'The DCS is in consultation with the South African Police Service, Department of Home Affairs, Department of Justice and Constitutional Development, and Department of International Relations and Cooperation to formalise a South African procedure to inter-state transfer of offenders.'
