3 strategies to saving for school fees

Educate
March 5, 2025

As the rising cost of living is still hitting many families hard, the cost of private school education continues to increase.

By Dr Susan Stone, Credit Union SA Chair of Economics

With the exception of the inflation spike that came in 2022/2023, school fees have been rising at a rate above inflation since 2018. With continued funding pressure on everything from building maintenance to teachers’ salaries, this is not likely to change.

The good news for many South Australians is that at $9,363, the median price of a private education here is about the cheapest in Australia. That doesn’t necessarily mean that it’s cheap for individual families, however.

Whether to send your child to a public or private school will depend on many factors. But if you choose a private school, there are some strategies one can apply to help ensure your family is in as strong a financial position as possible.

Below are a few tips for parents trying to save for their children’s education.

1. START SAVING EARLY

Start putting aside whatever you can as early in the year, or as early in your child’s life, as you can.

If private school is a definite for you, open a high interest savings account as soon as your child is born.

In the early years, put all your child’s Christmas and Birthday money ‘gifts’ into the account. You’ll be surprised at how quickly it adds up.

Set up automatic transfers to this account. Even an automatic transfer of $10/ week can quickly build to about $500 by the end of year. Another option is to use your offset account if you have one. This will help offset mortgage interest while allowing you to save for private school fees.

2. DELAY THE ENTRY

Another way to save money is to wait to transfer your children to a private school until they are a bit older.

While being in the same school throughout the entirety of a child’s education does provide a level of security and certainty, the need to adapt to a new environment can also develop life skills that help children later on when they go off to uni or eventually go out on their own.

3. INVESTIGATE WHAT SCHOOLS OFFER

Investigate the availability of scholarships or other types of financial assistance. This
can come through academic, sport, music or other opportunities which are always worth exploring. Also, many schools have payment plans or offer discounts if annual fees are made in full upfront.

While paying full fees may seem daunting, a dedicated savings scheme may help reduce the overall cost while providing some peace of mind for the remainder of that school year. It may also make meeting other activity or excursion fees easier to deal with if you don’t have the big tuition fee coming at the end of each term.