Today’s consumer price index (CPI) figures reveal that education costs continue to rise much faster than the rate of official inflation.
The latest Australian Bureau of Statistics report shows that education rose by 5.1% in the 12 months to June 2009, compared to the general cost of living increasing by only 1.5% in the same period.
Lifeplan’s General Manager of Strategic Development, Matt Walsh said "the latest news on inflation masks a major negative for all Australian families.”
With reports of huge increases in unpaid school fees, it’s more important than ever that families prepare early to meet the costs of schooling and tertiary education - it’s one of the last big sacrifices made in the household budget because it can cause considerable emotional disruption.
Mr Walsh said that “the 5.1% increase, in an environment of very low wages growth and rising unemployment - after a decade of a woeful savings record and a debt binge in Australia - will make it tough for families that are not saving a nest egg to pay for their kids education.”
“Relying on home equity is a risky and impractical approach. Families need a separate investment, quarantined from other assets, to bridge the major gap between what they aspire to achieve with regard to their kids’ education and their ability to finance it.”
“Given the economic environment, it’s not surprising that families are cutting down on expenses, but education is not considered a luxury and it’s important to avail yourself of an important tax break that the government allows for education savings plans to boost your earnings,” Mr Walsh said.
Lifeplan’s analysis of top private secondary school fees at the start of the year showed the average cost to send a child through a top secondary school is now more than $100,000 in fees alone – or over $100 a day. This excludes the effect of inflation over six years of high school and additional expenses such as admission and enrolment fees, building funds, books, uniforms, transport, technology and sporting equipment fees, excursions, music lessons or external tutoring.
For further information please contact :
Matt Walsh - General Manager, Specialised Products | Head of Lifeplan
Email: matt.walsh@lifeplan.com.au
23/07/2009