How much does it cost for a child's education?
An investment in your child’s education is one of the most important investments you’ll ever make. A quality education, often leads to a well-paying job and rewarding career, setting a child up for life.
Parents naturally want the best for their child, so education rightfully becomes one of the family’s top financial priorities.
However, education can also be one of the biggest expenses that a family will make, so often compromises and sacrifices are made.
With the cost of nearly everything on a family’s budget rising, the task of financing an education is becoming increasingly challenging.
The Cost
Depending on what schooling option you choose, the cost of education can be enormous, so it’s important to assess all options to ensure the choice you make is best for your child and your budget.
Each year, the Futurity Investment Group release an index of the cost of tuition in Australia, titled the ‘Futurity Investment Group Planning for Education Index’.
In regional areas, the average cost of educating a child for 13 years in an Australian public school is $68,268. In a Catholic school, the figure is $110,370, and in a private school the average cost is $143,701.
Please note that all the above figures include costs for textbooks, school uniforms, sports equipment, camp costs, computers, extra-curricular activities and additional tutoring.
Of the private schools, the most expensive school in Australia is Geelong Grammar, with Year 12 day-fees at $43,360. Sydney Church of England Girls Grammar School comes in second with Year 12 fees at $42,120, and third is The Scots College, NSW with Year 12 fees at $41,100.
As fees of this size are outside the budget of many families, other options that are less expensive (but still high quality), need to be considered.
What may be surprising, is that multiple studies have shown that whether your child goes to Public, Catholic or Private school, it makes little difference to academic scores, after accounting for socioeconomic background.
What has been found to matter to academic scores, is quality teachers and principals which are found across all school sectors.
What to look for
The best approach to planning your child’s education is to think well ahead, and do plenty of research. Fees are a big part of the planning, but they are not everything. There are also many other non-financial factors that need to be considered.
For example, when choosing a school, it’s important to find one that suits your values, but also meets your child’s strengths, interests and needs.
The school’s facilities and subject options is another consideration, as is the practicality of getting your child to and from school.
When considering schooling options, get to know as much about each school as possible. Attend Open Days, do a school tour or class visit, and speak to other parents about their experiences with the school.
Your Budget
It’s important for parents to be realistic about what they can afford, and to not put themselves under financial stress. This means keeping a budget, so that you know exactly what your cash inflows and outflows are, so that you can determine what you can realistically afford.
Consider all your options for various schools, and do your homework, as you may be pleasantly surprised to find that there are high-quality schools that are much more palatable for your budget.
Another possibility for reducing education costs is to consider combinations of public and private schooling throughout your child’s 13 years of school. For example, you may choose public school for primary and private school for secondary. Another option is public school up to Year 10, and then private school for just Year 11 and Year 12.
It all depends on what you can afford, but the most important thing is that it works for you and your children.
Education costs can be expensive, so it’s important to start planning (and saving) early.
One way to do this, is to open a fund specifically for saving for your child’s education, where you can regularly add contributions to the fund, until you need to begin withdrawing from it. With the benefit of time and compounding, such an approach can make a big difference.
Have you used our Kids Education Savings Calculator? Click here to check it out.
Frequently Asked Questions about this Article…
The cost of educating a child in Australia varies depending on the type of school. For 13 years of education, the average cost in a public school is $83,869 in major cities and $68,268 in regional areas. Catholic schools cost $143,944 in cities and $110,370 in regions, while private schools average $349,404 in cities and $143,701 in regions.
When choosing a school, consider factors such as the school's alignment with your values, your child's strengths and interests, the school's facilities and subject options, and the practicality of commuting. It's also beneficial to attend Open Days, school tours, and speak with other parents.
Studies suggest that the type of school—Public, Catholic, or Private—makes little difference to academic scores when socioeconomic background is accounted for. What matters more is the quality of teachers and principals, which can be found across all school sectors.
To manage education costs, it's important to keep a realistic budget and explore all schooling options. Consider combinations of public and private schooling, and start saving early by opening a dedicated education fund to benefit from time and compounding.
Cost-effective options include choosing public schools for primary education and private schools for secondary education, or public schooling up to Year 10 followed by private schooling for Years 11 and 12. Researching and comparing schools can also reveal high-quality, budget-friendly options.
Start planning by creating a budget to understand your financial situation. Consider opening a dedicated education savings fund where you can make regular contributions. This approach, combined with early planning, can significantly ease the financial burden over time.
Yes, tools like the Kids Education Savings Calculator can help you estimate and plan for future education expenses. Utilizing such tools can provide a clearer picture of the financial commitment required and assist in setting realistic savings goals.
Geelong Grammar is the most expensive school in Australia, with Year 12 day-fees at $43,360. Other costly schools include Sydney Church of England Girls Grammar School and The Scots College, NSW, with fees of $42,120 and $41,100 respectively.