We all want the best possible education for our children. Regardless of whether it’s a Government, Independent or Catholic school education, as parents, we’d like to be in the position to choose the best option for our children. With the cost of living increasing in particular the past year, it seems the cost of education in Australia is also on a steep upward trajectory.
 
The numbers are in, and you haven’t been imagining it. Education is getting more expensive.
 
The Futurity Investment Group Cost of Education Index has been released and the findings will likely be of little surprise to most parents. Educating your children is getting more and more expensive each year.

Key research findings
 
The Futurity Investment Group Cost of School in Australia report has revealed a significant shift in education costs.

Key findings include:

• For two in five Australian parents (39%) the experience of paying for their children’s school fees or voluntary contribution has a significant or moderate negative impact on their household financials.
• Nationally, school fees are forecast to make up only 8% of the total cost of a Government education.
• Sydney will be the most expensive city in Australia for an Independent education for a child starting school this year.
• Melbourne is Australia’s most expensive city for a Government education and Canberra is Australia’s most expensive city for a Catholic education.

While it can be overwhelming to consider the total true cost, there are steps you can take now to ensure you can explore and afford choice when it comes to your children’s education.

Cost of schooling in Australia

 
Generally, the cost of schooling in Australia is climbing. And the reality is all education costs money, regardless of the type of school. Whether it be Government, Independent or Catholic the cost of educating your children adds up.

The Cost of Education Index has revealed Melbourne is Australia’s most expensive city for a Government education. The total cost estimated for a Government education in the Victorian capital will be $102,807 over 13-years for a child starting school in 2023.

The Report found Canberra is Australia’s most expensive city for a Catholic education. The total cost of a Catholic education in the nation’s capital is forecast to be $197,667 over 13-years for a child starting school in 2023, 7% above the national average.

The research also revealed Sydney is Australia’s most expensive city for an Independent education. The Futurity Investment Group Cost of Education Index estimates the total cost of an Independent education in the New South Wales capital will be $357,931 over 13-years for a child starting school in 2023.

Future of education in Australia
 
Off the back of the Future of Education report by Mark McCrindle, all indicators point to hybrid learning being the way of the future. The report identified seven in ten students (70%) describe their ideal learning situation as a hybrid one, being a combination of time spent learning from home as well as at school.
 
As schools and the education system in Australia adjust to a different future, it becomes more important to be in a position to have choice. Planning financially for your child’s future education will provide you with the options to navigate how education will look in the coming years.
 

How much does school cost in Australia?
 
Where you live and educate your child in Australia will influence how much it will cost. Overall, cities are more expensive than regional or remote areas.
 
Sydney is home to Australia’s most expensive Independent education and Melbourne is Australia’s most expensive city for a Government education. Meanwhile, Canberra is Australia’s most expensive city for a Catholic education.
 
When looking at the total estimated cost of education over 13 years of schooling in Australia for a child starting in 2023, the numbers can be staggering. The below table compares the cost in major cities to regional and remote areas.

Education costs include things such as:

• school fees 
• outside tuition
• clothing
• travel
• software and electronic devices

Especially when it comes to public education, the add on costs are often not thought about or planned for. The Futurity Investment Group Cost of Education Index considers all costs, providing an accurate guide of what parents should expect.
 
Average cost of education in Australia
 
When looking at a breakdown of the average costs in each state, the costs for different types of education vary considerably.
 
For example, Sydney parents who send a child to an Independent school will spend $357,931 over 13 years. That’s 19% or $57,698 above the national average ($300,233). Whereas parents in Perth should expect to pay ($213,889), making it Australia’s most affordable city for an Independent education.

Real solutions for education costs

As one of the biggest investments you are likely to make, it should be possible to educate them at the school of your choice.
 
Therefore, understanding and preparing for the cost of education in Australia can make a world of difference in terms of the opportunities you can offer your children.
 
Start saving today with EdSaver - designed to help you save and tax-effectively accumulate the money you need for education expenses.

Contact us to better understand solutions available to help you confidently navigate the changing landscape of education in Australia and be financially prepared to give your children the best options.

How we can help

If you have questions about how we can help you, speak with your Financial Adviser about Futurity’s Education Bond range or get in touch with us.