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The Futurity Investment Group Cost of Education Index has revealed that Adelaide is one of Australia’s most affordable cities for a Government education. The index estimates the total cost of a Government education over 13 years will cost $114,678, a 30% increase compared to last year but 7% below the national average. When you look at Government schooling, there is no such things as ‘free’ education. Extra costs such as levies, uniforms, technology, textbooks, excursions, camps and transport need to be considered.

The research has revealed Adelaide is Australia's most affordable city for a Catholic education at 7% below the national average. It is estimated the total cost of a Catholic education will be $185,548 over 13 years for a child starting schooling in 2025, a decrease of 6% compared to last year.

The total cost of an independent education in Adelaide has increased in the past year by 5% to $302,387.

Today, with the rising cost of living – and education – more and more families are facing the reality that the best schools are becoming out of reach.

 

But solutions do exist. And with the right knowledge, process and guidance, they can navigate the cost of education in South Australia.

 

Cost of living Challenges

 

The cost-of-living challenges for families are well documented. Three in four Australians (77%) are extremely or very concerned with the rising cost of living. The challenge is forcing nine in ten Australians (89%) to make changes in their lives and spending in response.


Of the parents surveyed, almost 29% said they had gone without buying things for themselves and 24% said they had gone without family holidays to pay for their child’s education. More than one in ten (11%) were getting financial assistance from a grandparent to pay for their child’s education and 27% of respondents were using their credit card to pay for these costs.
 
But which costs are causing the most amount of pressure for Australian parents each month?
 
Some of the most significant include mortgage and rent (selected by 31% of respondents), utilities and rates (selected by 30%), and groceries (selected by 31%).
 
One in four Australian parents (25%) find paying for their children’s school fees or voluntary contributions is having a significant or moderate negative impact on their households.

 

We’re a nation that values education

 

Australians are strong advocates for quality education, with close to nine in ten parents (88%) believing schooling is essential for their children to thrive in life.

 

In the 2024 study the biggest barrier for parents sending their child to their preferred school is cost (26%) with other barriers being location (19%), zoning (19%) and school capacity/waitlist (18%).


Education is likely to be a priority spend item for parents, with 50% of parents believing it is the role of parents to financially contribute to their child’s lifelong education throughout their whole life.

It is telling that half of all parents who responded to the 2024 study report that they have someone else contributing to the cost of schooling (52%).

Parents are intentionally preparing for the costs of educating their children with nearly two thirds of parents (64%) taking a highly intentional approach to preparing for their child’s education costs.

 

So it’s clear Australia's parents could benefit from long-term planning support.

 

Schooling costs more than just tuition

 

One of the common missteps parents make when determining the cost of education in Australia is to base averages on school fees alone.

 

But the research shows that it is the ‘hidden’ costs – or ancillaries – that often add up the most.

In fact, these extra items account for more than 90% of total education costs in Government schools, 60% in Catholic schools, and 50% in Independent schools.

Families have no choice but to factor in the costs of uniforms, transport, camps, excursions, electronic devices and many other additional costs.

 

Is education expensive in South Australia?

 

So, what is the average cost of education in South Australia?

The table below breaks down the combined averages of tuition fees and ancillary costs nationally compared to South Australia over 13 years – according to schooling sector and location.

 

 

 

Government

Catholic

Independent

Major cities

$123,294

$193,666

$350,158

Regional/remote areas

$81,141

$153,144

$244,075

Adelaide

$114,678

$185,548

$302,387

SA (Regional)$75,600$147,044$268,134

*These numbers are population-weighted and projected over a 13-year period and provided as a guide only. The actual costs cannot be guaranteed.

 

How to help clients achieve their education savings plans

 

Quality education comes at a cost. But it’s also one your client can plan for today – to ensure their child has a better tomorrow.
 
When looking at the figures in this article, it’s easy to see why a parent would feel a sense of dread or apprehension at how they will make this work. But as with everything in life, with the right knowledge and guidance, it is possible for them to afford the education they want for their child – comfortably.

The key is to help them to create a solid plan – and encourage action.

 

For over 50 years, Futurity have been helping Australian families to afford the costs of education through our Education Bond.

 

Our solutions are designed to allow you to help your clients save and accumulate funds for schooling expenses in a tax-effective way. Furthermore, other features around estate planning and intergenerational wealth transfer are available.

 

A child’s education is one of the biggest investments parents will ever make. It’s never too early to understand and prepare for these costs – so they can create the bright future they envisage for their children.

 

Want to learn more about Futurity’s Education Bond range? Get in touch with our Business Development Team.

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