Managing the Soaring Costs of Private Education | the Advisory

Why It Matters

Rising private‑school fees threaten household budgets, prompting families to adopt disciplined, long‑term investment strategies or rely on generational support to afford quality education.

Key Takeaways

• Private school fees in Australia rising 7% annually, reaching $50k
• Projected cost per child could exceed $100k by year 13
• Advisors recommend $1,300 monthly savings per child in growth funds
• Lump‑sum of $166k can fund mid‑tier private schooling for 13 years
• Education bonds, mortgage paydown, or direct portfolios are primary financing options

Summary

The advisory segment tackles the accelerating cost of private education in Australia, where senior school fees now approach $50,000 a year and are climbing at roughly 7% annually. With household incomes lagging behind, families risk facing six‑figure expenses per child if they do not plan early.

Experts cite a 31% rise in private‑school enrollment as a key driver, alongside expanded extracurricular programs and facility upgrades. Ashley Tilston of Spectrum Wealth Partners outlines concrete numbers: a monthly contribution of about $1,300 per child into a high‑growth index fund, or a one‑time lump‑sum of roughly $166,000, can meet the projected $100,000‑plus cost over a 13‑year horizon.

Tilston emphasizes the importance of identifying the target school to set a realistic savings goal, noting that Catholic schools may offer a cheaper alternative at $20‑30k annually. He also highlights that 63% of private‑school families receive financial support from grandparents, underscoring the multigenerational nature of the expense.

The discussion concludes that parents must adopt structured financing strategies—education investment bonds, mortgage paydown, or direct investment portfolios—to stay ahead of fee inflation. Without such planning, the burden could erode disposable income, affect mortgage capacity, and limit other family priorities.

Original Description

Key points:

Private education costs are rising at 7% a year, set to exceed $100,000 annually per child

Early savings plans, lump sum investments, and direct portfolios are suggested strategies

No tax relief available for private school fees; costs must be managed with after-tax income

Grandparents play a significant role, supporting 63% of private school students financially

Ashley Tilston from Spectrum Wealth Partners outlines the rising costs of private education in Australia, with senior school fees now nearing $50,000 per year and projected to reach $100,000 annually within 13 years. Tilston points to strong demand, increased enrolment in private schools, expanded facilities, and enhanced extracurricular activities as key contributors to these rising fees, outpacing household income growth and inflation. With no tax breaks for private education, families bear these expenses from their after-tax income, intensifying the need for careful financial planning.

Tilston highlights the importance of early and strategic saving for families considering private schooling, noting that a robust plan could require saving approximately $1,300 per month per child into a high growth index fund. Alternatively, those with access to a lump sum—perhaps from selling an asset or inheritance—would need to set aside around $166,000 per child to cover mid-tier private school fees over 13 years. Catholic schools like Cincinnati, Ignatius, and Riverview present more affordable options but still require considerable investment.

Three core financial strategies are identified: education investment bonds, reducing mortgage debt to save on interest, and establishing direct investment portfolios. Tilston underlines the importance of matching investment returns to education cost inflation, and acknowledges the increasing role grandparents play in supporting education expenses, with 63% of private school students estimated to get financial help from family.