Melbourne is one of Australia’s most expensive capital cities for a Government, Catholic and Independent education, with all sectors above the national average, according to exclusive research released today.
The Futurity Investment Group Planning for Education Index estimates the total cost of a Government education in Melbourne will be $86,737 over a 13-year period for a child starting school in 2021.
The total cost of a Government education in the Victorian capital is six per cent above the national average ($81,823), and second only to Sydney ($90,122), the nation’s most expensive capital for a Government education.
School fees ($434) are likely to make up a fraction of the total cost of a Government education for a child starting school in 2021 in Melbourne, with outside tuition ($2,050), school camps and sports equipment ($625), electronic devices ($513) and uniforms and textbooks ($461) all costing more.
The Index discovered a similar result for parents considering a Catholic education for their son or daughter, with Melbourne forecast to be the second most expensive city in Australia behind Brisbane for a Catholic education for a child starting school this year.
It’s estimated Melbourne parents who send a child to a Catholic school will spend $142,923, two per cent above the national average ($140,433) and more than Sydney ($128,828) and Perth ($136,963) parents, who reside in Australia’s most affordable cities for a Catholic education.
It’s anticipated outside tuition ($1,640) will be the most expensive component of a Catholic education for a child starting school in 2021 in Melbourne, followed by school fees ($1,375), school camps and sports equipment ($1,281) and electronic devices ($513).
The Futurity Investment Group Planning for Education Index revealed Melbourne ($393,534) is also one of Australia’s most expensive cities for an Independent education, 15 per cent or $52,652 above the national average ($340,882).
The estimated total cost of an Independent education for a child starting school in 2021 in Melbourne is second only to Sydney ($448,035), Australia’s most expensive capital for an Independent education.
School fees ($16,219) are likely to be the most expensive part of an Independent education for a child starting school this year in Melbourne, well ahead of outside tuition ($1,538), school camps and sports equipment ($1,333), transport ($1,025) and uniforms and textbooks ($820).
Futurity Investment Group also measured the financial impact of COVID-19 and discovered parents spent on average an additional $808 per child on education related expenses as a result of the pandemic last year, including $336 on electronic devices, $202 on outside tuition and coaching, $111 on stationary and $99 on textbooks.
The research discovered 37 per cent of Catholic school parents felt some (negatively impacts the household’s discretionary spending) or a lot (negatively impacts the household’s quality of life) of financial pressure as a result of the COVID-19 pandemic, compared to 34 per cent of Government school parents and 31 per cent of Independent school parents.
Two in three (64 per cent) Independent schools offered financial assistance/payment plans for fee payment during the COVID-19 pandemic, compared to 59 per cent of Catholic schools and just 16 per cent of Government schools.
Three in four (73 per cent) Independent school parents were either satisfied or very satisfied with their child’s school during the COVID-19 pandemic, compared to 67 per cent of Catholic school parents and 62 per cent of Government school parents.
The analysis also revealed 46 per cent of Government school parents spent more than two hours a day during the COVID-19 pandemic supporting their child’s learning, compared to 36 per cent of Catholic school parents and 33 per cent of Independent school parents.
One in four (27 per cent) Government and Catholic school parents reported they took annual leave or unpaid leave during the pandemic to help educate their child at home, compared to 22 per cent of Independent school parents.
Futurity Group Executive, Kate Hill said irrespective of Australia’s inflationary environment, the cost of education has risen at more than double the rate of inflation over the past decade.
“Education costs, including outside tuition, school camps and sports equipment and electronic devices are demanding a far greater share of the family budget than in the past,” Ms Hill said.
“More than ever, the costs associated with education are placing more of a burden on Australian families, who are already stretched by the rising cost of living and stagnant wage growth.
“With less discretionary money to spend, it’s going to be very hard to pay for education, which means parents who have planned and saved will be in a better position in the long run.
“COVID-19 has only exacerbated this financial challenge, with parents required to spend hundreds of dollars extra on unplanned education related expenses at the height of the pandemic.
“In a post COVID-19 world, dedicated education savings and investment products, like Futurity Investment Group’s revolutionary Education Bonds, can help fix the great education funding challenge for our children and grandchildren.
“Futurity’s Education Bond range allows parents and grandparents to tax-effectively save and invest to establish financial provisioning for a full spectrum of lifelong education, including pre-school, primary, secondary, university, TAFE, job, mid-life/career, micro-credential, adult education and indigenous courses.”
To calculate the total cost of education for your son or daughter, visit Futurity Investment Group’s Cost Calculator.
|Total estimated cost of education for a child starting school in 2021** Location||Government||Catholic||Independent|
|National (regional & remote)||$66,603||$107,678||$140,197|
|NSW (regional & remote)||$58,227||$114,611||$133,920|
|QLD (regional & remote)||$76,588||$118,681||$160,139|
|SA (regional & remote)||$69,735||$104,215||$138,885|
|VIC (regional & remote)||$57,719||$105,544||$208,031|
|WA (regional & remote)||$72,825||$107,370||$150,452|
**Estimates of future long-term education costs projected over a 13-year period are provided as a guide only. Being estimates, Futurity cannot guarantee they will represent the actual cost of education for a particular child or school sector or particular period.
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