1300 HH WLTH (1300 449 584) info@hhwealth.com.au

3 Things To Consider When Choosing Schooling

The age-old debate of Private v Public Schooling is still causing parents headaches. Obviously… we all want the best for our children but at what cost? This article hopes to debunk some the intrinsic benefits, opportunity costs and trade-offs of paying for private schooling.

From a financial planning perspective, it is a no-brainer that private schooling will hugely impact the average Australian families cashflow and in turn when we parents can retire. With the cost of living on the up and up, the recent soar in property prices and the unseasonably low interest rates… its cause for concern and a time for families to pump the brakes on expenses.

Let’s get into my top 3 considerations:

1. Intrinsic Benefits

Depending on where you live and your local catchment – there will be children from all walks of life, cultural and socio-economic backgrounds. This is an invaluable lesson for your child. The modern workplace is full of a diverse mixture of people – LGBTQIA+ community, cultural, social and educational. If your child can learn from a young age to be inclusive, empathetic, respectful & make friends; they will have a far more contented adulthood.

The OECD Programme for International Student Assessment (PISA) tests the student’s reading, maths and science. It also takes into consideration the student’s background, home and schooling contexts. In PISA 2015 the students’ socioeconomic background contributes to positive academic performance. The study found that more educated parents can provide richer learning opportunities at home and higher expectations of academic performance. This means that when parents have the economic capital to provide material resources and familial capital (that is the parents’ interest and expectations) these factors shape the students’ attitude and aspirations more than the school they attend.

The takeout here is that if you take an interest in your child’s attendance, handing in of homework and assignments.


Their outcomes will be greater regardless of the uniform they wear or the infrastructure they attend.

2. Opportunity Cost

What do I mean by opportunity cost? …It’s the cost of a missed opportunity, basically the opposite of a gain e.g. an investment that goes up in value before you’ve gotten around to investing.

The average cost of private school tuition fees vary from $12,000 to $42,000 per annum.

Report by the Australian Scholarships Group estimated the cost of $475,342 for years 1-12.

We will make some conservative assumptions – the lower end of the scale at $20,000 per child, private schooling from Years 7-12. That’s $240,000 but if we put that into a compounding interest calculator at the average owner-occupier mortgage rate of 2.73% (Sources: APRA; RBA). We are looking at a whooping $260,428 (Source: Moneysmart).

What could you do with an extra $260,428? Might be time to seek advice from the number 1 Financial Advisor in Brisbane.

Some things off the top of my head may include:

1. Pay Down Debt Sooner

2. Enjoy more Family Holidays

3. Cut back on work

4. Save money and Grow your Assets

5. Give the kids a headstart and invest these funds for their future

3. Trade-Offs

To me, everything comes at a cost. It’s the cost of time we have versus the outcome. Time is our most precious commodity.
What do you expect your family to go without to afford these school fees?

Is it regular holidays?

Is it Mum/Dad/Carer being able to attend sporting events?

Is it Mum/Dad/Carer being able to volunteer and help in the classroom?

Is it Mum or Dad being stressed out and creating an unhappy home environment?

Is it Mum and Dad divorcing/separating? (as we all know financial issues are the most common cause for break ups)

Is your child not academically inclined and feeling the pressure at home as we are spending ‘all this money’ on your school fees?

We are very fortunate to live in a first world country where we and our children have plenty of educational options to suit each family situation. We are lucky that are children are safe when they attend school. We are lucky that are government has rigid educational requirements for both boys and girls. We are lucky that are kids are going to flourish wherever they go to school because we love them.

Hopefully this article has inspired you to have a think about the financial decisions you make on behalf of your family and the flow on effects.

It’s time to seek advice and invest these funds for your future. Call the number 1 financial advisors in Brisbane on 1300 449 584 for an obligation free discussion.

General Advice Warning

The information in this article and the topics and strategies discussed are of a general nature. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.

If you are seeking financial planning services like ethical investing, retirement planning, to wealth management in Brisbane, book your consultation with us and see how we can help grow your wealth in more ways than one.

Have you got a topic?

CB Wealth Australian Pty Ltd T/As HH Wealth is a Corporate Authorised Representative (No. 1283595) of Axies Pty Ltd ABN 38 136 704 446 AFSL No 339 384. Chris Holme is an Authorised Representative (No. 1004793) of Axies Pty Ltd ABN 38 136 704 446 AFSL No 339384.

Our Financial Services Guide (FSG) and Adviser Profile contains important information about Insight Investment Services Pty. Ltd., any authorisations and the services we provide. The following link will take you to an electronic copy of the FSG, if you would prefer to receive it another way please contact our office. FSG HERE>