98fiveFM: How to save for private school education

22 August 2019

98five FM.

Radio discussion on how to save up for private school education.

Statistics show that 1 in 3 families send their child to non-government school.  Private school fees across Australia have risen by an average of 3.1% in 2019, well above the inflation rate of about 1.9%. While some school have reduced their fees or had no fee change, 84% of private schools have increased their fees.

6 years in private high school will cost around $115,000 and $65,000 for independent and catholic schools respectively.

This includes estimates for:

  • Tuition fees
  • Textbooks and Devices
  • Uniforms
  • Transport
  • Musical instrument and sporting apparel
  • Excursions, school trips and camps

These extra items can add up to about $3,500/pa

Here are some pointers:

  • Do your research on government schools.
  • Decide if this expense is high up on your priority list.
  • Add up all the cost of private school fees and include a 10-15% buffer for the unexpected.
  • You will have to reconsider if the budget cost more than 35% of your family net income.

Hare are some investments to consider:

  • Offset accounts
  • Progress or online savers accounts
  • Managed fund or insurance bonds if you have more than 8 years
  • Beware of products that look like loans
  • Don’t lock yourself in products that have mapped out pathways
Elson Goh joins Bec in the studio

Elson Goh from EG Financial Services joins Bec in the studio and they are going to discuss how to save for private education.

Posted by 98.5 Sonshine FM on Wednesday, 21 August 2019