Receive all the latest updates in financial planning from the expert team at National Financial Advisors.
Planning For the Cost of Education
It’s natural to want to give your children the best education possible, but the facts are that the cost of education can be an expensive outlay from your family’s budget. However, your children’s education is not an area where you want to penny pinch. With this in mind, how can your family prepare for the cost of education?
Even if you think your family is prepared for your child’s schooling costs, it’s important to evaluate your plan regularly. The cost of education is on the rise; between 2012 and 2013, education costs rose by 5.7% compared to the Consumer Price Index (CPI) growth of 2.3%. It’s not unusual for your children’s education needs to rise as they get older, too, meaning that you may find yourself in a situation where your child’s needs are changing – and becoming more expensive! – along with the rising cost of education.
Simply put, a set-and-forget financial strategy for the cost of your child’s future may not be enough.
The Australian Scholarship’s Group (ASG) estimates that the lifetime cost of education in New South Wales for one child is as high as $71,000 in government schools and $542,000 for a private school! While fees are often the first expenditure to come to mind, there are many expenses that parents overlook when it comes to their children’s schooling costs such as:
- School bags
- Computer costs
- Internet access
- Extra-curricular equipment e.g. sports, musical instruments
- Stationery costs
- Transport costs
- Recesses and lunches
These add up, and they can strain the family budget if you’re not already prepared.
National Financial Advisors’ financial advisors are experienced with helping people at every life stage to achieve their financial goals, including young families that are finding the cost of education a struggle. To ease the strain on your family budget and give your child the best education possible, contact National Financial Advisors for a free consultation today!