The Australian Scholarships Group (ASG) has released new education cost estimates that reveal parents can expect to pay more for education now and into the future. This year alone, parents will outlay between $2,662 and $6,952 for total costs associated with their child’s 2008 preschool year, between $5,317 and $12,561 for their child’s 2008 primary school year, and between $5,618 and $21,112 for their child’s 2008 secondary school year depending on whether they choose government, systemic (eg Catholic) or private schooling.
The estimates reflect ASG’s Member parents’ spending on education and are indexed according to the latest information available from the Australian Bureau of Statistics.
Undoubtedly, it can be daunting for new parents to realise that their baby could set them back somewhere between $52,000 and $305,000 for their secondary schooling alone depending on their school choices for their child.
However, ASG cautions parents against letting the estimates overwhelm them and instead encourage parents to exercise sensible planning strategies to support their education choices for their children.
“Education is a major expense for parents whatever school setting they choose,” says Warwick James, ASG’s General Manager of Communities. “It is an inescapable reality for parents that paying for their children’s schooling is not only one of the most expensive outlays for families, but also one that is increasing significantly every year.”
“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,” Mr James says.
The Education Sub-Index of the Consumer Price Index was more than double the inflation rate according to the September 2007 figures from the Australian Bureau of Statistics. (Education ran at 4.16 per cent against the All Group CPI Index of 1.9 per cent.) A comparison of the two figures over the past 15 years shows that education costs have risen at more than double the inflation rate.
2008 Secondary School
Costs Update
Secondary school is the schooling stage where many parents choose to exercise the greatest discretion with their education choices and ASG encourages parents to use its Online Secondary Schooling Costs Calculator (updated with 2008 data) to determine their ability to afford their preferred education cost choices. The calculator is free to use and collects no personal information from the user. Go to ASG’s website and follow the calculator link at: www.asg.com.au.
The new 2008 secondary school figures show that parents of a student entering a government or public secondary school for Year 7 in 2008 will need to find a total of $5,618 with $1,660 being fees, levies, and charges, $795 being for requisites (stationery, text books, school bag, art and craft materials, and sport equipment), $740 for uniform expenses, $786 for incidentals (outings, camps, private tuition, music lessons, instruments, sports coaching, drama, art or dance classes, travel and commuting to school) and $1,637 for computer and internet costs.
This compares with the costs associated at a systemic (eg Catholic) secondary school for Year 7 of $11,445 of which $7,267 is for fees and levies charges, $842 being for requisites (stationery, text books, school bag, art and craft materials, and sport equipment), $908 for uniform expenses, $790 for incidentals, and $1,638 for computer and internet costs.
Parents of students attending private secondary schools for Year 7 will be hardest hit with their 2008 school year totalling $21,112. Of this, $16,456 represents fees and levies charges, $951 being for requisites (stationery, text books, school bag, art and craft materials, and sport equipment), $1,033 for uniform expenses, $908 for incidentals and $1,764 for computer and internet costs.
Parents can expect to pay total amounts of $61,000 for their children’s secondary education at a government or public school, $153,000 for systemic (eg Catholic) secondary education, and $305,000 for private secondary education in Victoria, New South Wales, Australian Capital Territory, or Tasmania where children attend secondary school for six years from Years 7 through to 12. (See table on page 20.)
In Queensland, Western Australia, South Australia or Northern Territory where children attend secondary school for five years from Years 8 to 12, the total amount for a student’s secondary education would be: $52,000 for government or public school, $131,000 for systemic (eg Catholic) secondary education, and $261,000 for private secondary education.
The latest Secondary Education CPI Sub Index figure available from the Australian Bureau of Statistics is 7.1 per cent with an average of 6.96 per cent over the past five years. The Secondary Education CPI Sub Index has outstripped all other education CPI Sub Index figures during the past five years and has increased at two and a half times the CPI All Groups Index during the same period (6.96 per cent compared to the CPI All Groups Index of 2.75 per cent).
Contributors to the escalating costs include teacher and support staff salaries, technology and infrastructure costs along with insurance and taxes (land), smaller class sizes, administration, security and safety costs.
Pain Management
“Parents should start planning early if they wish to provide choices in their child’s education,” Mr James says.
“Specific tax effective education programs simplify the task for parents of young children – a disciplined approach saving between $38 to $45 per week will manage the pain of government secondary school; $94 to $112 per week to meet the total costs of systemic (eg Catholic) schooling, and $187 to $221 per week for private schooling.
“The key is starting early to minimise the pain,” Mr James says. “You don’t need a lump sum amount to begin your program and you may receive taxation benefits.”
Other suggestions for making planning for secondary schooling more accessible for families include:
. halving contributions so that families meet half of the total costs from their family’s disposable income
. encouraging grandparents and relatives to contribute additional lump sum amounts each year
. kicking off an education program with a lump sum amount, or
. increasing contributions in line with your family’s additional earnings.
ASG is Australia’s largest member-based organisation specialising in education benefit programs that assist parents in planning for their children’s education.
To date, ASG has helped more than 350,000 parents plan for the costs of their children’s education using the benefits of collective mutual pooling and has more than $1.5 billion in funds under management.
ASG offers an education benefits program beginning from around $10* per week with no lump sum payment required and which offers taxation concessions. Parents and relatives wishing to send their children to independent schools will need to contribute extra amounts to meet their education savings goals.
For more information about ASG and its activities, please visit www.asg.com.au or telephone 1800 648 945.
*depending on the age of the child at enrolment
Undoubtedly, it can be daunting for new parents to realise that their baby could set them back somewhere between $52,000 and $305,000 for their secondary schooling alone depending on their school choices for their child.
However, ASG cautions parents against letting the estimates overwhelm them and instead encourage parents to exercise sensible planning strategies to support their education choices for their children.
“Education is a major expense for parents whatever school setting they choose,” says Warwick James, ASG’s General Manager of Communities. “It is an inescapable reality for parents that paying for their children’s schooling is not only one of the most expensive outlays for families, but also one that is increasing significantly every year.”
“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,” Mr James says.
The Education Sub-Index of the Consumer Price Index was more than double the inflation rate according to the September 2007 figures from the Australian Bureau of Statistics. (Education ran at 4.16 per cent against the All Group CPI Index of 1.9 per cent.) A comparison of the two figures over the past 15 years shows that education costs have risen at more than double the inflation rate.
2008 Secondary School
Costs Update
Secondary school is the schooling stage where many parents choose to exercise the greatest discretion with their education choices and ASG encourages parents to use its Online Secondary Schooling Costs Calculator (updated with 2008 data) to determine their ability to afford their preferred education cost choices. The calculator is free to use and collects no personal information from the user. Go to ASG’s website and follow the calculator link at: www.asg.com.au.
The new 2008 secondary school figures show that parents of a student entering a government or public secondary school for Year 7 in 2008 will need to find a total of $5,618 with $1,660 being fees, levies, and charges, $795 being for requisites (stationery, text books, school bag, art and craft materials, and sport equipment), $740 for uniform expenses, $786 for incidentals (outings, camps, private tuition, music lessons, instruments, sports coaching, drama, art or dance classes, travel and commuting to school) and $1,637 for computer and internet costs.
This compares with the costs associated at a systemic (eg Catholic) secondary school for Year 7 of $11,445 of which $7,267 is for fees and levies charges, $842 being for requisites (stationery, text books, school bag, art and craft materials, and sport equipment), $908 for uniform expenses, $790 for incidentals, and $1,638 for computer and internet costs.
Parents of students attending private secondary schools for Year 7 will be hardest hit with their 2008 school year totalling $21,112. Of this, $16,456 represents fees and levies charges, $951 being for requisites (stationery, text books, school bag, art and craft materials, and sport equipment), $1,033 for uniform expenses, $908 for incidentals and $1,764 for computer and internet costs.
Parents can expect to pay total amounts of $61,000 for their children’s secondary education at a government or public school, $153,000 for systemic (eg Catholic) secondary education, and $305,000 for private secondary education in Victoria, New South Wales, Australian Capital Territory, or Tasmania where children attend secondary school for six years from Years 7 through to 12. (See table on page 20.)
In Queensland, Western Australia, South Australia or Northern Territory where children attend secondary school for five years from Years 8 to 12, the total amount for a student’s secondary education would be: $52,000 for government or public school, $131,000 for systemic (eg Catholic) secondary education, and $261,000 for private secondary education.
The latest Secondary Education CPI Sub Index figure available from the Australian Bureau of Statistics is 7.1 per cent with an average of 6.96 per cent over the past five years. The Secondary Education CPI Sub Index has outstripped all other education CPI Sub Index figures during the past five years and has increased at two and a half times the CPI All Groups Index during the same period (6.96 per cent compared to the CPI All Groups Index of 2.75 per cent).
Contributors to the escalating costs include teacher and support staff salaries, technology and infrastructure costs along with insurance and taxes (land), smaller class sizes, administration, security and safety costs.
Pain Management
“Parents should start planning early if they wish to provide choices in their child’s education,” Mr James says.
“Specific tax effective education programs simplify the task for parents of young children – a disciplined approach saving between $38 to $45 per week will manage the pain of government secondary school; $94 to $112 per week to meet the total costs of systemic (eg Catholic) schooling, and $187 to $221 per week for private schooling.
“The key is starting early to minimise the pain,” Mr James says. “You don’t need a lump sum amount to begin your program and you may receive taxation benefits.”
Other suggestions for making planning for secondary schooling more accessible for families include:
. halving contributions so that families meet half of the total costs from their family’s disposable income
. encouraging grandparents and relatives to contribute additional lump sum amounts each year
. kicking off an education program with a lump sum amount, or
. increasing contributions in line with your family’s additional earnings.
ASG is Australia’s largest member-based organisation specialising in education benefit programs that assist parents in planning for their children’s education.
To date, ASG has helped more than 350,000 parents plan for the costs of their children’s education using the benefits of collective mutual pooling and has more than $1.5 billion in funds under management.
ASG offers an education benefits program beginning from around $10* per week with no lump sum payment required and which offers taxation concessions. Parents and relatives wishing to send their children to independent schools will need to contribute extra amounts to meet their education savings goals.
For more information about ASG and its activities, please visit www.asg.com.au or telephone 1800 648 945.
*depending on the age of the child at enrolment