The rising cost of education in Australia is a worry for many parents. If education for your kids is a priority, then the best way to prepare is to understand what’s involved. Some parents have even resorted to applying for education loans to help their children stay in school.
Here’s an overview of all the things you should take into account when working out how much to put aside for your children’s education.
The tuition fees
A look at the year ahead by the Australian Scholarship Group (ASG)¹ for costs of education for children at school age now shows what you might need to think about preparing for.
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Additional information from ASG shows the average funds that might be needed for a child born in 2017 through the whole experience of primary and high school. Obviously the type of school will make a big difference but the national average total cost of a public school education if a child goes to school from age 5 – 16 is $68,613. That means about $109 for every week of their school years ASG suggests you will want to plan for.
Private school fees are eye watering – at a national average of $487,093.
What’s included in these numbers?¹
Many schools will require an application fee at the point of enrolment. How much you might have to pay in application fees depends on the school but a common public school amount is $265². Enrolling in a private school will generally be more expensive than a public school.
Both public and private schools fees may not necessarily cover costs for any excursions or trips. These expenses are additional, and many schools choose to pass on the costs of these to the families. Some schools also pursue expensive overseas trips that could potentially cost thousands of dollars. Although these trips aren’t the norm, they are bit of a rising trend.
Textbooks, computers and materials
Students will need to fund stationery and possibly textbooks, although these costs will vary from school to school. You should also factor in the cost of electronic tools they will probably need, such as laptops, tablets or software. One Microsoft Australia survey found three in four parents spend up to $1000 on devices for educational purposes.
Day to day expenses
The necessities will include uniforms, shoes and school bags. You will also need to account for food and transport to and from school. Also factor in other school based expenses like sports clubs, extra curricula activities like music or gym, or extra tutoring if necessary.
Helpful planning resources
Below are some useful links when you are planning for your children’s education:
- The ASG Cost Calculator
- The Australian Government’s StudyAssist FEE-HELP
- The Australian Government’s StudyAssist HECS-HELP
Because the cost of education is pretty significant, it’s important to plan your budget carefully.
If you need to pay for education costs but don't quite have the required savings, a personal loan could be an option worth exploring. Whatever you decide, it’s a smart idea to get professional advice before taking out a loan.
To get you started, find out how much your individual rate and repayments might be here before applying (it won't affect your credit score).
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This article provides you with factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in this article. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77 or speak to an accredited Pepper Money broker.