ASG Planning for Education Index 2017: Private vs Public

by Nicole Gundi | Feb 03, 2017

Everybody knows that raising children can be quite expensive—there are so many things to factor in, including their education which is most likely to be the biggest expense.

The ASG Planning for Education Index reveals for a child born in 2017 the estimated cost of a private school education over 13 years could cost parents up to $487,093 across metropolitan Australia.

When you breakdown the costs, it’s not hard to imagine the dollar sign going into a spin which parents say is ‘frightening’ and ‘scary’.

For example for a child attending a private 

school children performing in band concert

secondary school this year, parents can expect to pay up to $1923 for extracurricular activities such as music lessons and up to $620 in clothing, on top of fees which could be almost $21,000.      

In fact, the ASG Planning for Education Index also shows the cost of a private school education has skyrocketed by 64 per cent over the last decade for a child born in 2017 in comparison to 2007.

ASG member Muhammad Harron knows just how expensive education can be. He spends approximately $30,000 a year to send his son Samar (year five) to a grammar school in Sydney and says ensuring a holistic education is important to his family. 

“Samar’s school offers the International Baccalaureate syllabus and we wanted to give him an environment where he can be exposed to international languages and cultures. It’s not just about education but overall development, because we need to start thinking differently and the world is larger than a city or suburb.

It was important to join ASG to give us the financial security to always be in a position where we can afford Samar’s education, because we don’t know what’s going to happen in the future.”

Based on more than 12,500 responses, the index calculates a range of variables including school fees, transport, uniforms, computers, school excursions and sporting trips to determine the cost of education.

But if you’re child happens to attend a government or public school, don’t think you can breathe easy.

Gone are the days of a ‘free’ education, as from K-12 parents could expect to pay on average more than $68,000 for a child born in 2017 and it’s even more expensive in Victoria topping $77,000 as the most expensive city for a government education  

The cost of sending a child to a government school has also increased by 25 per cent over the decade, which means parents are spending an extra $13,000 for a child born in 2017.

Regardless of the type of school you send your child to, or where you’d like them to go in the future, education is getting more and more expensive and continues to outgrow inflation.

ASG CEO Velegrinis says Australians are fortunate to have excellent government, systemic and private schools to choose from, but costs can spiral out of control.

“If you have three children, the cost of educating them in Sydney or Melbourne’s private education system could top $1.6 million. That’s significantly more than the purchase price of the average family home.

According to the Australian Bureau of Statistics, education costs have risen by more than two and a half times the rate of inflation in the last 10 years. So we advocate parents use a disciplined approach by putting a little bit away each week so they can financially afford to meet their children’s educational goals and aspirations.”

For more information on the ASG Planning for Education Index including metropolitan and regional cost estimates for a child born in 2017 go to www.asg.com.au/edcosts to access the media releases, infographics and the ASG cost calculator.

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