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