Having a child is one of life’s great gifts. But let’s not forget how expensive kids can be, especially with the rising costs of education.
In fact, putting your child through private education from pre-school to Year 12 could cost you as much as $400,000.1 And even with a public school education, you could still end up paying over $60,000 per child during their school years, when you take into account things like uniforms, tech essentials, and extracurricular activities.2
It’s a good idea to get into the habit of regularly putting money aside, so you can stay on top of school fees and other expenses. The sooner you start, the longer your money will have to grow — and for potentially higher returns, you might even consider investing the money rather than simply putting it in a savings account.
What’s more, with rising rents and costs of living, there’s a good chance your kids will depend on you financially well into their adulthood. In Australia, at least 1 in 4 young people aged between 18 and 34 live with their parents3 — so it’s worth keeping this in mind when you’re planning for your family’s future.
1 Australian Scholarships Group, How much can you expect to pay for your child’s schooling? 2016.
2 Australian Scholarships Group, How much can you expect to pay for your child’s schooling? 2016.
3 Domain Group, Domain house pricing report, June 2015
Disclaimer: This article has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.
Information in this article is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document.
This document contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.