Managing Private School Fees

How to Reduce Education Expenses in Australia

Aug 16, 2009 Wei Yin Wong

Manage school fees by using a school budget planner, sending kids to state primary school first, making use of early payment discounts and asking about repayment plans.

Once the excitement of having their child being accepted to a private school dies down, parents often have to dig deep into their pocket to pay for school fees and other education expenses.

Make no mistake. Sending kids to private schools is an expensive endeavor, especially for working class families. Fortunately, there are ways of managing school fees. Here are some tips to help parents reduce education expenses at independent schools in Australia.

Use a School Budget Planner

This is separate from the usual household budget planner. But it serves the function of keeping track of school fees and related costs so that parents can plan how much they need to spend for their kids’ education expenses. Jot down school fees, uniforms for different seasons, textbooks, stationery, computer and Internet requirements, transport costs and after school care charges. Work out how much the family should put aside for their child’s school fees.

Send Children to a State Primary School first

Many parents also use the strategy of enrolling their children in state primary schools first before sending them to private secondary schools. Save and invest wisely during the six years a child is in primary school. In the meantime, put the child’s name on the waiting list of a preferred independent secondary school. Do note being on the waiting list costs hundred of dollars with no guarantee that the child will eventually be accepted.

Make Use of Early Payment Discounts

Parents can also reduce education expenses at private schools by making use of early payment discounts offered by many schools. The discount can range between 5% and 10% of annual school fees. That’s quite a substantial amount when it’s taken off tens of thousands of dollars.

Some schools also allow parents the option of prepaying school fees up to a certain number of years in advance. If the family has sufficient fund, this will bring down the costs of private school education considerably.

Ask About Repayment Plans

Most working class families will not be able to make a single lump sum payment. Instead, they often have to split the payments into several installments. So do ask about repayment plans available at the school. Fortnightly, monthly or quarterly repayments may be more suitable for some families.

Ask About Sibling Discounts

Parents planning to send more than one child to a private school should also take advantage of sibling discounts that some schools offer.

While it’s true that private school education is costly, there are ways to cut down school fees. Australian parents can reduce their kids’ education expenses by using a school budget planner to keep track of costs, sending their kids to public primary schools first, using early payment discounts, split payments into several installments instead of paying one lump sum and enquiring about sibling discounts.

Found this article useful? Read also Saving for Children’s Education, Meeting the Costs of Children’s Education and Using Debt to Finance Children's Education.

References:

Field, Nicola. Investing in your Child’s Future. Queensland: Wrightbooks, 2008.

Hely, Susan. “Saving for your Children’s Education” in Money Magazine. Australia: ACP Magazines, April 2006.

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Sending Kids to Private Schools is Costly