- @SANDRAKSTEWART
How to SAVE for your children’s education
Updated: May 21, 2020
If you are a parent you are fully aware that the cost of private education is continually rising, with some schools in Sydney charging fees of up to $38,000 a year, sometimes more (in boarding and other cases) ; and that doesn’t include uniforms, excursions and after school activities. I know this first hand as my daughter has been to two school private schools during her eduction; A top tired school and a lower tiered one.
(Rankings and costs of Sydneys private schools displayed below the article)

The cost of private primary and private school is one thing, but schooling doesn't stop there- then there paying for a university degree (particularly in the popular disciplines like law, IT and medicine) fees are also rising. Families are taking on more debt and the associated risk to ensure their child gets the best educational outcomes and start at life.
The bottom line is that education is getting more expensive and competition for entry to the best courses will only get more fierce.
No parent wants their child to start their working life with a huge debt hanging over their heads, potentially pushing stress levels of a new job, continued training and independent living costs to a toxic place of severe stress. Its simply not healthy to have the weight of the world on your child’s shoulders while they are trying to figure out their place in the world. Of course a little bit of hard work never hurt anyone and I’m not suggesting you spoil them, simply take into account the world is changing rapidly and jobs, relationships and housing is not as secure or accessible as it once was. Young adults forced into high stress situations can present with trauma like responses and develop unhealthy coping mechanisms. They also tend to burn out far quicker in their new found careers and personal lives.
But don't fear there are easy ways to save and prepare!
Starting a savings plan when your children are young may be a very wise solution . Parenting is hard, it can be emotionally challenging and financially demanding. But the key is to put a sound plan in place as early as possible and stick to it. The earlier you start the less you actually have to do later! Just think of the return on investment! A secure well functioning child is priceless! Life can throw many curve balls- but financial challenges don’t have to be one of them as future finances are usually very easy to plan and prepare for.
Most parents know the importance of doing this but are unsure how to start or what product or strategy to follow, particularly when there are tricky tax rules to be aware of. For example, if you put the investments in your own name any interest income is added to your taxable income and may reduce your Family Tax Benefits. If you put the investments in your child’s name, penalty tax rates apply once they have “unearned” income in excess of $416.
So what to do?
Here are a number of options to consider.
Remember to talk to your financial advisor of tax professional if you are unsure of the best option for you.
Investment bonds
One option is an “investment bond”. These products sometimes have other names but are essentially tax paid life policies where you choose the investment strategy. If they are held for at least ten years the proceeds are tax-free when cashed in.
One useful feature is that the investor can make a contribution of up to 125% of the previous year’s contribution and retain the tax-free status after ten years. Income is reinvested and not included in the investor’s taxable income. If you cash it in before ten years there may be tax payable but you can use the proceeds for any purpose – not just for education expenses.
Friendly society education plans
These are similar to investment bonds in some ways. The friendly society pays tax at the corporate tax rate of 30% and income is reinvested. However a special tax concession allows the friendly society to claim back the tax paid if the funds are used for educational purposes.
The plan proceeds must be used for educational purposes but there is more flexibility in making contributions and withdrawing funds than with an investment bond.
Mortgage offset account
If you have a mortgage you can build up funds in a mortgage offset account. This works both ways by reducing your interest costs at the same time. You can draw on the offset account when school fees become due.
Some other options may be;
Term deposits
A term deposit is a cash investment held at a financial institution (like your regular bank). Your money is invested for an agreed rate of interest over a fixed amount of time, or term. However these are currently at very low interest rates- under the rate of inflation, which means your money will unlikely grow.
High yield savings accounts
A savings account with monthly contributions automated from your checking or debit account. Don't be deceived by the name high yield these can still be very low incrust rates of return. most in Australia currently below inflation. These are good for saving short term. Amounts of pooled money after a year or so can then be invested elsewhere.
Or even a structured investment set up by your financial advisor.
You could consider a trust or property asset that produces an income to later pay the kids expenses.
One solution rarely suits every person and we recommend that you talk to your licensed adviser to determine which options best suit you and your family’s circumstances.
Below is a chart of private school fees in Sydney for your reference. Taken from WWW.SYDNEYPRIVATESCHOOLS.COM.AU
Sources:
www.ato.gov.au, “Individual Income Tax Rates - Children”; “Income of individuals under the age of 18”
https://www.privateschoolnews.com.au/sydney-private-secondary-school-fees


SYDNEY PRIVATE SCHOOL FEES 2019
Information categorised as follows;
SCHOOL NAME
SUBURB
YEAR 8
YEAR 10
YEAR 12
MOST to LEAST expensive
Cranbrook School
BELLEVUE HILL
$36,120
$36,120
$38,100
The King's School
NORTH PARRAMATTA
$33,886
$34,586
$36,900
Sydney Grammar School
DARLINGHURST
$36,615
$36,615
$36,615
St Catherine's School
WAVERLEY
$33,160
$34,160
$35,080
Trinity Grammar School
SUMMER HILL
$31,460
$32,690
$34,770
SCECGS Redlands
CREMORNE
$31,200
$34,600
$34,600
Presbyterian Ladies' College
CROYDON
$33,040
$33,040
$34,080
Newington College
STANMORE
$31,347
$33,291
$33,984
St Joseph's College
HUNTERS HILL
$33,360
$33,360
$33,360
St Andrew's Cathedral School
SYDNEY
$32,035
$34,370
$33,270
Sydney Church of England Grammar
NORTH SYDNEY
$29,880
$31,460
$33,060
Knox Grammar School
WAHROONGA
$31,170
$31,170
$32,940
Moriah College
BONDI JUNCTION
$28,186
$30,513
$32,885
Abbotsleigh
WAHROONGA
$30,830
$31,620
$32,840
Barker College
HORNSBY
$30,920
$32,820
$32,820
Ravenswood School for Girls
GORDON
$31,980
$32,735
$32,800
Pymble Ladies' College
PYMBLE
$29,955
$31,005
$32,375
MLC School
BURWOOD
$29,952
$30,664
$31,584
Meriden School
STRATHFIELD
$30,100
$30,500
$31,470
Reddam House
WOOLLAHRA
$27,125
$29,305
$31,045
St Ignatius' College
LANE COVE
$28,600
$28,600
$29,520
International Grammar School
ULTIMO
$24,850
$24,850
$25,900
Loreto Normanhurst
NORMANHURST
$22,374
$22,374
$25,335
Santa Sabina College
STRATHFIELD
$22,750
$22,750
$23,650
St Luke's Grammar School
DEE WHY
$22,740
$22,940
$23,505
Monte Sant' Angelo Mercy College
NORTH SYDNEY
$20,060
$20,820
$22,380
Loreto Kirribilli
KIRRIBILLI
$20,190
$22,260
$22,260
Kinross Wolaroi School
ORANGE
$19,020
$19,328
$20,440
Central Coast Grammar School
ERINA HEIGHTS
$19,180
$20,320
$19,980
Hunter Valley Grammar School
ASHTONFIELD
$17,040
$17,040
$18,009
Inaburra School
BANGOR
$16,104
$16,104
$17,722
Oxford Falls Grammar School
OXFORD FALLS
$15,552
$15,552
$17,232
Calrossy Anglican School
TAMWORTH
$12,100
$15,640
$16,605
Northern Beaches Christian School
TERREY HILLS
$12,970
$13,750
$16,330
St Augustine's College Sydney
BROOKVALE
$14,612
$14,372
$15,974
Pacific Hills Christian School
DURAL
$13,690
$13,690
$15,940
Waverley College
WAVERLEY
$13,119
$13,998
$14,958
Mount St Benedict College
PENNANT HILLS
$12,900
$12,900
$12,900
Our Lady of Mercy College
PARRAMATTA
$10,750
$10,750
$12,750
William Clarke College
KELLYVILLE
$11,868
$12,124
$12,700
Marcellin College
RANDWICK
$11,180
$12,480
$12,480
Oakhill College Castle Hill
CASTLE HILL
$10,290
$11,020
$11,410
St Patrick's College, Strathfield
STRATHFIELD
$9,900
$9,570
$10,689
Chevalier College Bowral
BURRADOO
$8,157
$8,771
$9,920
St Aloysius' College
MILSONS POINT
$4,905
$4,905
$9,810
Bishop Druitt College
COFFS HARBOUR
$9,072
$9,072
$9,720
St Philip's Christian College
WARATAH
$7,960
$8,280
$9,660
Rouse Hill Anglican College
ROUSE HILL
$8,160
$8,160
$9,600
Green Point Christian College
GREEN POINT
$8,190
$8,190
$9,483
St Gregory's College Campbelltown
GREGORY HILLS
$8,400
$8,570
$9,340
St Scholastica's College Glebe Point
GLEBE
$7,800
$7,800
$9,060
St Pius X College
CHATSWOOD
$9,036
$9,036
$9,036
William Carey Christian School
PRESTONS
$7,960
$8,410
$8,890
St Columba Anglican School
PORT MACQUARIE
$7,076
$8,244
$8,592
Rosebank College
FIVE DOCK
$7,750
$7,925
$8,260
St Edward's Christian Brothers' College
EAST GOSFORD
$7,455
$6,955
$8,092
Broughton Anglican College
MENANGLE PARK
$7,100
$7,100
$7,800
Thomas Hassall Anglican College
MIDDLETON GRANGE
$7,320
$7,320
$7,740
Lindisfarne Anglican Grammar School
TERRANORA
$6,912
$6,912
$7,512
Arndell Anglican College
OAKVILLE
$7,160
$7,160
$7,455
Edmund Rice College
WEST WOLLONGONG
$5,904
$6,318
$7,164
Christian Brothers High School
LEWISHAM
$7,111
$7,111
$7,111
Lakes Grammar - An Anglican School
WARNERVALE
$6,376
$6,376
$7,095
Trinity Anglican College - Albury
THURGOONA
$5,950
$7,050
$7,050
St Dominic's College
KINGSWOOD
$5,958
$5,958
$6,696
St Mary Star of the Sea College
WOLLONGONG
$4,648
$4,544
$6,104
Amity College, Prestons
PRESTONS
$5,460
$5,460
$6,100
Trinity Catholic College
AUBURN
$5,036
$5,336
$5,823
Richard Johnson Anglican School
OAKHURST
$5,200
$5,200
$5,715
St Patrick's Marist College
DUNDAS
$4,779
$4,941
$5,688
St Columba's Catholic College
SPRINGWOOD
$4,323
$4,761
$5,520
Caroline Chisholm College
GLENMORE PARK
$4,092
$5,055
$5,295
Bethany College
HURSTVILLE
$4,649
$4,895
$5,162
Gilroy Catholic College
CASTLE HILL
$4,239
$4,476
$5,139
St Andrews College
MARAYONG
$4,377
$5,064
$5,129
Cerdon College
MERRYLANDS
$4,026
$4,377
$5,079
St John Paul II Catholic College
SCHOFIELDS
$4,266
$4,587
$4,974
Bede Polding College
SOUTH WINDSOR
$4,395
$4,548
$4,974
Xavier College
LLANDILO
$4,101
$4,338
$4,869
St Johns College
DUBBO
$3,639
$4,212
$4,836
Trinity Catholic College
LISMORE
$3,388
$3,689
$4,238
St Charbel's College
PUNCHBOWL
$2,861
$3,047
$4,212
Mater Maria Catholic College
WARRIEWOOD
$3,174
$3,315
$3,807
St Joseph's Regional College
PORT MACQUARIE
$3,399
$3,399
$3,789
St John Paul College
COFFS HARBOUR
$3,489
$3,489
$3,489
James Sheahan Catholic High School
ORANGE
$2,871
$3,003
$3,303
Malek Fahd Islamic School
GREENACRE
$3,180
$3,340
$3,105
Patrician Brothers' College
BLACKTOWN
$2,157
$2,394
$3,057
MacKillop Catholic College
WARNERVALE
$2,191
$2,323
$2,801
Penrith Anglican College
ORCHARD HILLS
$2,020
$2,020
$2,795
St Peter's Catholic College
TUGGERAH
$2,159
$2,288
$2,759
St Philip's Christian College - Cessnock
NULKABA
$1,610
$2,030
$2,713
Al Noori Muslim School
GREENACRE
$2,660
$2,660
$2,660
Marist Sisters' College Woolwich
WOOLWICH
$1,778
$1,971
$2,625
Aquinas Catholic College
MENAI
$1,751
$1,941
$2,586
St Patrick's College, Sutherland
SUTHERLAND
$1,744
$1,934
$2,576
St Paul's High School
BOORAGUL
$1,698
$1,698
$2,559
St Francis Xavier's College
HAMILTON
$2,559
St Ursula's College
KINGSGROVE
$1,731
$1,919
$2,557
Marist College Kogarah
BEXLEY
$1,699
$1,883
$2,509
Good Samaritan Catholic College
HINCHINBROOK
$1,658
$1,838
$2,449
Corpus Christi Catholic High School
OAK FLATS
$1,790
$1,933
$2,403
Holy Spirit College
BELLAMBI
$1,790
$1,933
$2,403
John Therry Catholic High School
ROSEMEADOW
$1,790
$1,933
$2,403
Magdalene Catholic High School
NARELLAN
$1,790
$1,933
$2,403
Mount Carmel Catholic College
VARROVILLE
$1,790
$1,933
$2,403
Holy Spirit Catholic College
LAKEMBA
$1,622
$1,799
$2,396
Patrician Brothers' College Fairfield
FAIRFIELD
$1,574
$1,745
$2,325
Al-Faisal College
AUBURN
$2,223
$2,299
$1,995
Australian Islamic College of Sydney
MOUNT DRUITT
$1,780
$1,780
$1,780
St Pius X High School
ADAMSTOWN
$1,698
$1,698
There are more schools that do not appear on this list....