According to ASG Planning for Education Index 2018 released on 16 January 2018, the cost of education in Australia has soared 61% in the past decade and could cost a staggering $475,342 to educate one child through the private system.
ASG is a member owned organisation and specialist education benefits provider and provides estimates on the cost of education in Australia. It estimates the full cost of primary and secondary education for a child born in 2018 could cost $66,320 in the public system, while faith-based education was estimated to cost $240,676 per child.
The figures include the cost of school fees, as well as an estimate for extra-curricular activities, computers, travel expenses, uniforms, school excursions and camps. Interestingly, the Australia Bureau of Statistics’ Household Expenditure Survey also supports this rise in education spending in their report released in 2017 which found costs rose by up to 44% in the six years between 2009-10 and 2015-16 mainly extra spending on school fees.
The ASG research “reveals a child’s education is one of the most significant investments a family could make. If you have three children, the cost of educating them in Sydney or Melbourne’s private education system could top $1.6million. That’s significantly more than the purchase price of the average family home.”
Estimated average costs to educate a child born in 2008 and 2018 across metropolitan Australia
|Government||$ 53,756||$ 66,329||23|
Can you afford not to have an insurance protection plan?
While we don’t like to think about the ‘worst case scenarios’ if anything did go wrong, could you and your family afford the cost of raising your children, in particular, cover the increasing cost of education highlighted in the survey above, along with home and car loan repayments, credit card and other household bills.
Taking out a protection plan, and maintaining it, can help you to negotiate through life’s curveballs. The great thing about having a plan in place is that if you have an accident or worse and you are not able to work, this plan can help ease some of the financial burden these events can cause.
For more information, speak to one of our Financial Advisers at Odyssey. Call 08 9208 1444.
Source: https://www.asg.com.au/doc/default-source/2018-asg-planning-for-education-media-releases—australia/asg_2018-planning-for-education_national_approved.pdf?sfvrsn=2, 2 March 2018
Any advice in this communication has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on any advice, consider whether it is appropriate to your objectives, financial situation and needs.
Michael Ryding, Anthony Shear and Yolande de klerk, Odyssey Financial Services (WA) Pty Ltd, ABN: 88 124 789 635 Authorised Representatives of Godfrey Pembroke Limited ABN 23 002 336 254 Australian Financial Services Licensee, Registered office 105 – 153 Miller Street North Sydney NSW 2060, is an Australian Financial Services Licensee and member of the National Australia Bank group of companies.