A national survey undertaken by the not-for-profit education benefits provider Australian Scholarship Group (ASG), has revealed that the cost of schooling is expected to escalate over the next five years, with private schooling increasing by up to 25 per cent – double that of the government system.
Parents planning to send their child to private school in the future will need to prepare for significant cost increases says the ASG, whose survey asked its 12000 members to supply information on education-related expenses such as school fees, extra-curricular activities, travel, clothing, necessities and computers. ASG’s General Manager – Development, Frida Kordovoulos, says the research finding are clear: the rising costs of education will have a significant impact on family budgets regardless of which schooling system parents choose for their child.
“Whether parents are planning to send their child to a government or private school, the increasing costs of education over the next five years are expected to have a significant impact on household finances, particularly those not prepared for the hidden expenses associated with educating a child,” Ms Kordovoulos told Neos Kosmos.
Parents who choose government schooling for a child born in 2012 can expect to pay up over $65,000 over the 14 years of their schooling, with families opting for private education expected to spend over $425,000.
Ms Kordovoulos warns that no school will be immune to increasing education costs. “The rising costs associated with the price of education are expected to affect every child, every parent and every school, no matter where you live,” said Ms Kordovoulos.
“This could prove increasingly challenging for families already feeling the pinch in today’s tough economic environment.”
Parents currently sending their children to non-government schools, told Neos Kosmos that any such rise will bring with it major problems in their ability to sustain private education. IT manager Bill Petridis, whose daughter Georgiana starts Year 1 at Oakleigh Grammar in Victoria this week, told Neos Kosmos that he’s currently paying around $6000 a year, and that such a rise will make things very difficult.
“We’re fairly new residents in Oakleigh, and we’re building a new house with a hefty mortgage to go along with it, so we’re definitely feeling the pinch like other families. “We’re paying relatively modest fees at the moment, but friends of ours have just sent their children to Glen Waverley College. For Year 1 they’re paying $16,000 and for Year 5 – $18,000. And that’s without other costs, uniforms and everything else.” Like all families spending extra on their children’s education, for Bill Petridis, it’s a matter of making ends meet. “You sacrifice on other things. I’ve been considering upgrading my vehicle but have had to put that aside. Our intention is to keep Georgiana at a private school all through her education, as long as the school keeps providing good academic outcomes, and the fees remain reasonable.”
John Milides, an educator himself in Victoria, said that in his experience of sending both his daughters and his son to private schools, cost increases are nothing new. “It’s been very difficult to meet the costs of our children’s education, my wife and I are both teachers, we’re not business people, our income is always steady,” says John, who paid $10,000 a year when his 14-year-old daughter attended Ivanhoe back in 2002. Today it’s more like $24,000.
“The increases even in the last few years have been tremendous. In my view the schools have been given so much money by the federal government that they don’t know what to do with it. In one school I heard that they had so much money which they didn’t know what to do with, that they said, ‘ok we’ll build a butterfly cage!'” Frida Kordovoulos’ advice for parents is to begin preparations for meeting the costs of education early – whether its for private or government schools, and to pay into a fund that will meet costs further down the track.
“The idea of the product ASG offers is to put money aside where you can’t put your hands on it. Education is the fastest rising component of the consumer price index, so it affects every school, every child, and every family.” “It costs from $11 a week, that’s three coffees. Any amount of money that can help support the costs of a child at high school is an amount that will be valued when the time comes.” For more info on the Australian Scholarships Group go to www.asg.com.au