The cost of education always raises a lot of debate, so in this episode, Owen Rask and financial adviser Alex Luck discuss the cost of private school and how it compares financially to other education options.
✅ Jump into the Rask Community to let us know your thoughts!
Here’s what Owen & Alex discuss:
- Research says 30-40% attend a private school, as parents believe it will bring them success in life.
- Only 34% of parents think they are financially equipped to contribute to education.
- Victoria = most expensive for Government schools ($6,072 on average – 17% than the national average), second most expensive for private ($17,051 – 2% above average), most affordable for catholic ($10,460)
- How much does it cost for private, semi-private and private?
- Tuition
- Boarding – can be meaningful, + $28,000 for Xavier ($30k for tuition)
- Textbooks & related tech – estimates suggest +5%
High school, Victoria, 2023
| Government | Catholic | Independent | |
| Tuition | $971 | $7,843 | $12,209 |
| Ancillary | $5,771 | $7,235 | $11,932 |
| Total cost of education | $6,742 | $15,078 | $24,141 |
- Is there proper research and data to support the case for a better education?
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- UNE study found no difference in academic performance once adjusted for SES.
- Curtin study suggests MAYBE a 10% increase in wages for catholic, 15% for private
- “Overall, the results suggest that private schooling continues to be an important mechanism by which socio-economic advantage is transmitted between Australian generations, largely due to enhanced access to higher education.”
- Some research suggests that nepotism is a big thing, but it’s not concrete.
- Some research suggests it does improve ATAR scores and, therefore, university acceptance
- How about non-financial benefits?
- Social?
- Extra-curricular?
- Some states offer government schemes for sport or music, e.g. in NSW, a $50 voucher for Active and Creative Kids for families receiving the Family Tax Benefit Part A/B/both.
- Would you move to access a better school zone? Could you rent in that catchment?
- Book a tour
- Check the rules for your school
- Good public school zones often perform better, so if you can buy it could mean cheaper schools + better long-term property outcomes
- 5 ways someone can budget for private school:
- Savings account & term deposits – currently 5%
- Invest for yourself – put your own safety mask on first
- Invest in their name – parent legal owner, child beneficiary
- Education bond – Generation Life
- Other – property, business, family trust, pre-pay for the school
- How about some financial advice for families who have decided that private school is not the right option for them, such as how to find affordable alternatives and how to make the most of public schools?
