Anri Armer, Financial Adviser at Momentum Financial Planning
Becoming a parent is one of the most significant life transitions you will experience, but when you choose to start a family, there can be financial implications that extend well beyond the immediate costs of raising a child. For women who choose to have children later in life, the financial planning conversation needs to consider not only the cost of raising a family, but also the potential costs, timing and trade-offs that may come with delayed childbearing.
Recent data from Statistics South Africa (Stats SA) shows that South Africa’s fertility rate has dropped from 2.78 children per woman in 2008 to 2.21 today. Research by the UN Population Fund indicates that this decline is primarily driven by growing economic pressure. Financial considerations now play an important role in deciding when – and if – to expand a family.
While most expectant parents focus on the immediate baby budget with items including prams, cots, clothing, and nappies – lots and lots of nappies – these short-term budget items only capture a fraction of the cost of raising a child. Industry estimates are that raising a child to age 18 in a middle-income household now costs between R1 million and R2 million, excluding tertiary education. Before becoming parents, it’s a good idea to look beyond short-term shopping lists and construct a comprehensive baby balance sheet across every stage of the parenting journey.
For many women, decisions about when to have children are influenced by career, financial security, relationships and personal circumstances. There is no universally “right” age to start a family, but delaying parenthood can create financial considerations that are worth understanding before making that decision.
The question is therefore not whether women should or should not have children later. It is whether they have considered the financial consequences of that decision and have a plan for them.
The fertility planning factor
One of the financial considerations that can accompany delayed childbearing is the possibility of fertility challenges. Fertility declines with age, and for some women, having children later may mean considering fertility assessments, assisted reproductive technology or treatments such as in vitro fertilisation (IVF). These treatments can be expensive, and they may not always be covered in full by medical schemes.
This makes fertility planning an important part of the broader financial conversation. Rather than waiting until treatment becomes necessary, women who intend to have children later could consider building a dedicated savings or investment fund earlier in their careers. The purpose would not be to assume that fertility treatment will be required, but to create financial flexibility should it become necessary. For example, setting aside money in a separate investment or savings account in your 20s or early 30s could provide a financial buffer if fertility treatment is needed later. This could allow you to meet an unexpected cost without having to raid retirement savings, take on expensive debt or abandon other long-term financial goals.
Pre-birth and healthcare planning
Healthcare inflation in South Africa has consistently outpaced the standard Consumer Price Index (CPI) for decades. Today, private hospital costs for an uncomplicated birth range between R25,000 and R45,000, escalating to R70,000 and more for complex deliveries or specialist care.
Aligning your medical aid options and securing gap cover well before delivery protects your household balance sheet against out-of-pocket specialist shortfalls. Accounting for potential pre-conception or fertility support ensures these medical choices are funded without draining long-term savings.
Birth and income shifts
Welcoming a child often brings temporary or permanent changes to income dynamics for both mothers and fathers. Under the Basic Conditions of Employment Act (BCEA), parents receive a combined pool of 130 days of leave between them. This also applies to single parents.
Unless supplemented by employer benefits, parents relying on Unemployment Insurance Fund (UIF) payouts receive only 38% to 66% of their normal earnings, capped at statutory thresholds. Factoring this cash-flow dip into your balance sheet ahead of time avoids unnecessary reliance on short-term credit.
Your earning capability is your family’s most valuable asset. Reviewing disability and dread disease cover ensures your family’s standard of living remains secure if an unexpected illness or injury occurs.
Post-birth and long-term wealth creation
Once the initial transition settles, the financial focus shifts to ongoing lifestyle expenses, childcare, and future planning.
Parents often fall into the trap of pausing retirement contributions to fund immediate childcare or schooling costs. Starting dedicated, early education funds prevents your child’s future needs from compromising your financial independence in later life.
Updating your will is non-negotiable once you have dependants. It guarantees your assets are managed according to your instructions, securing your child’s care no matter what happens.
When children and retirement coincide
Perhaps one of the most important financial considerations of having children later is the timing of major child-related expenses.
School fees, tertiary education, childcare and other significant costs do not necessarily occur when your income is at its highest or your financial commitments are at their lowest. If you have children in your late 30s or early 40s, some of their biggest expenses could coincide with the years when you would ordinarily be increasing retirement contributions and preparing for retirement.
For example, a parent who has a child at 40 could still be funding school or university costs in their late 50s or early 60s. This creates a very different financial reality from someone who had children earlier and may have completed their major child-related expenses before reaching retirement age.
The risk is that retirement savings become the financial back-up plan for education or other family costs. This can create a difficult trade-off: funding a child’s immediate needs at the expense of your own long-term financial independence.
Planning for these overlapping timelines early is therefore critical. Parents can consider separate investment strategies for different goals – such as education, retirement and potential healthcare or fertility costs – rather than treating all long-term savings as one pool of money.
Flexibility over perfection
A well-structured financial strategy is not meant to be a rigid set of rules, nor should it add pressure during a demanding season of life. Instead, a dynamic plan evolves alongside your family as priorities shift, income grows, and career paths unfold.
Partnering with a professional financial adviser allows parents to look at the bigger picture, balance immediate household expenses with long-term aspirations, and build a resilient balance sheet that supports their family’s future.
ENDS
