Start now to give your kids the best start

4 min watch

Everyone wants the best for their children. Providing a good education is a huge part of preparing them for the best possible future. But as education becomes more expensive, planning and budgeting for these costs becomes essential.

If you're planning to send your kids to a private school, you are probably already juggling a mortgage, ongoing household expenses and the day-to-day costs of raising children such as sports and other activities. It's not easy to save extra while still maintaining the lifestyle that you enjoy.

In the video below, Simone and Steven have decided to speak with an adviser to see if they could be doing something more to make sure they have the money to pay for their kid's education. Perhaps a more structured savings plan or investment would help.

Here are some steps to help you get on the right track to fund your kid's education:

  1. Start now. The sooner you start saving the better. Consider a regular investment plan to take advantage of compounding interest
  2. Make sure your insurances are adequate and up-to-date. Think about income protection, life insurance and cover for extended illness.
  3. Pay as much as you can afford into your mortgage with an offset/withdraw facility. This will help reduce the interest and then have the option to redraw to pay for school fees.
  4. Work out how much you need to put aside. The table below shows a rough guide to the costs of primary and secondary education. These figures represent the upper ranges that parents can reasonably expect to pay, although fees vary across states, ages and schools.


Government Primary

Government Secondary

Systemic Primary School

Systemic Secondary School

Private Primary School

Private Secondary School


$500 - $3,000 per year

$900 - $4,000 per year

$3,000 - $6,000 per year

$8,000 - $11,500 per year

$9,500+ per year


Make the most of gifting. For grandparents and those wanting to give something special, a savings account could be a great way to give a new baby something that will grow with them. Re-pay education expenses - if you already have children at school, check if the school allows you to pre-pay fees at a discounted rate. If you are able to pay upfront, it may help reduce the worry about rising costs into the future.

Your child's education helps to define their future. Are you prepared for their tomorrow? Speak to your financial adviser.

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This information is current as at 19 July 2015.

BT Financial Group - A Division of Westpac Banking Corporation. This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. This information does not constitute financial advice. It has been prepared without taking account of your objectives, financial situation or needs. Because of this, before acting on this information, you should consider its appropriateness having regard to your objectives, financial situation and needs. Information in this blog that has been provided by third parties has not been independently verified and BT Financial Group is not in any way responsible for such information.