Education costs double inflation rate
Parents would be well-advised to develop a financial plan to cope with skyrocketing education costs as early as possible, according to the Australian Scholarships Group (ASG).
The latest figures from the Australian Bureau of Statistics show that the education sub-index of the Consumer Price Index more than doubled the inflation rate last year and costs can only be expected to rise further. ASG pointed out that education costs have more than doubled the inflation rate for the past 15 years.
“Education is a major expense for parents whatever school setting they choose,” ASG general manager of communities Warwick James said.
“Despite ever increasing school fees and expenses, parents are still grossly underestimating the costs that lie ahead. Starting to plan early will help to ease the financial burden in the long term.”
ASG recommends working out exactly how much a child’s education is likely to cost as early as possible and embarking on a disciplined savings program to raise the necessary funds.
“The key is starting early to minimise the pain,” James said.
“Specific tax-effective education programs simplify the task for parents of young children. Saving between $38 and $45 per week will manage the pain of government secondary school, $94 to $112 per week will meet the total costs of systemic (for example, Catholic) schooling and $187 to $221 per week is needed for private schooling.”
According to ASG, parents can expect to pay between $2,662 and $6,952 in 2008 for their child’s preschool education, between $5,317 and $12,561 for their primary school education and between $5,618 and $21,112 for their secondary education, depending on whether they opt for government, systemic or private schooling.
ASG is one of several Australian member-based organisations specialising in helping parents to plan financially for their children’s education.
Recommended for you
Insignia Financial has announced the status of the two private equity bidders as due diligence comes to an end, with one bidder opting to pull out.
The corporate regulator has cancelled the AFSL of a Queensland-based financial services provider, having held the licence since mid-2016.
The financial advice industry has reacted to the appointment of Dr Daniel Mulino as the new Minister for Financial Services, with hopes for improvements in legislation and education standards.
With less than one-third of Australian business owners seeing an adviser, Business Health has detailed how advice practices can successfully target this underserved client segment.
