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The Futurity Investment Group Cost of Education Index has revealed that Sydney remains the most expensive city for Independent schooling in Australia, with a staggering $411,108 estimated cost over the course of a child’s education at an Independent school.

The research has revealed the total cost of an Independent education in Sydney is 17% or $60,950 above the national average. The Futurity Investment Group Cost of Education Index also revealed Sydney is Australia’s most expensive city for Government education.
 
It is estimated that the total cost of a Government education in Sydney will be $150,323 over 13-years for a child starting school in 2025, 22% above 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, and camps and transport need to be considered.
 
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 New South Wales.

 

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 (8%) 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.

 

It is 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 look at 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 New South Wales?

 

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

 

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

 

 GovernmentCatholicIndependent
Major Cities$123,294$193,666$350,158
Regional/remote areas$81,141$153,144$244,075
Sydney$150,323$197,349$411,108
NSW (Regional)$89,448$148,960$250,900

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

 

 

Have a plan to save for education

 

Quality education comes at a cost. But it’s also one parents can plan for today – to ensure your child has a better tomorrow.

 

It would be easy to look at the figures in this article and feel a sense of dread or apprehension at how you will make this work. But as with everything in life, with the right knowledge and guidance, it is possible to afford the education you want for your child.

 

The key is to create a solid plan – and to take action.

 

For over 50 years, we’ve been helping Australians families to meet the costs of education through our expertly managed savings products including our education bond, Futurity EdSaver. Our solutions are designed to help parents and grandparents just like you save and accumulate funds for schooling expenses in a tax-effective way.

 

Your child’s education will likely be one of the biggest investments you’ll make. It is never too early to understand and prepare for these costs – so you can create the bright future you envisage for your children.

Need help planning for the cost of education? Speak with your Financial Adviser about Futurity's Education Bond range or contact us today.

 

 

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