From saving to borrowing to invest, we discuss how to plan for the rising cost of education.
With private school fees reaching tens of thousands in the large capital cities, many families are keen to look at ways to provide for their kids’ education. Here are some steps that may help get you started.
Find out the school fees and expenses you’re likely to incur, the number of years you’re likely to incur them (say, years 7 to 12) and consider your time frame – the difference between your child’s current age and the age at which they start at your chosen school. This may be able to help you work out how much you need to save, which you can then break down into annual, monthly or weekly increments.
Consider setting up a direct debit into a savings account you don’t touch, such as an online savings account or a reward saver account paying a higher rate of interest. If your child was in childcare and is now attending a (public) primary school, you could start by putting away the amount you’re now saving in childcare fees.
If you have a time frame of five years or more and are comfortable taking a higher level of risk with your savings, you could consider putting regular savings into a managed fund, or buying diversified investments such as an exchange-traded fund (ETF). These investments are more volatile than cash but may generate higher returns over the long term, helping you reach your savings goal.
A financial adviser can help you assess the options available to you and find the solutions that will meet your needs – no matter what stage of life you’re at.
This information has been produced by NULIS Nominees (Australia) Limited AFSL 236465 ABN 80 008 515 633 and may constitute general advice. It has been prepared without taking account of individual objectives, financial situation or needs. Before acting on any information you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives. We recommend you obtain financial, and tax, advice tailored to your own circumstances prior to making any investment or acquisition decision.