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