Home loans aside, the cost of sending your children to school is one of the biggest financial burdens an Australian household is likely to face.
The latest Cost of Education Index from Futurity Investment Group shows that nationally, the average cost of education for one child starting school in 2025 at a government school is $123,294 for metro and $81,141 for regional and remote areas*. This means that for the first time, Aussies living in a capital city will spend at least $100,000 per child for thirteen years of public-school education.
These average costs are significantly higher for Catholic ($193,666 metro and $153,144 regional/remote) and Independent schools ($350,158 for metro and $244,075 for regional/remote).
For government schools, costs have increased by roughly one third. A large contributing factor to this is the additional items on top of school fees, such as uniforms, textbooks, stationary, technology, school camps, transport, and outside tuition or elective activities.
Despite the rising costs of education, parents still value their child’s education. 50% of parents surveyed as part of the Index said it was their responsibility to pay for their child’s education for life. 90% said that a good education was important for their child’s future success and happiness.
However, a quarter of parents said that paying for their children’s schooling had a significant or moderate negative impact on their households. How are households keeping up with these rising education costs? The number of households using credit cards has increased, as have those who are relying on help from others, such as grandparents**. A large number of parents are forgoing holidays, working extra hours, and going without items for themselves.
Unlike other large household costs, it can be difficult to cut back on the cost of education. School fees themselves can make up roughly 50-60% of the overall cost. It is possible to shop around for cheaper options for stationary, second-hand uniforms, textbooks and other items. For planning ahead, consider opening a high interest savings account and start putting aside an amount each week over the year (or even before your child is of school age).
If you’re struggling with school costs, there are services you can look into. Services Australia provides payments, vouchers and rebates for school age and tertiary students for eligible households to help with education costs. Visit the Department of Education website in your state or territory to see what grants, scholarships and programs may be available to you. Moneysmart lists some of the state government options and other tips for reducing costs here.
On a final note, if you’re able, consider getting in touch with a charity or organisation that focuses on supporting families who are struggling with the cost of their child’s education. The cost of education is large, but its value is priceless.
* Futurity Invest, ‘The cost of education in Australia 2025’
** ABC news, ‘Australian families struggling to afford their kids’ education’
