A growing number of Australian families are struggling to meet the increasing financial demands of their children’s education, according to the latest Cost of Education Index from the Futurity Investment Group. The study revealed that for a child starting at a public school in a major city this year, the total cost from prep to Year 12 could reach as high as $123,294—a 33% increase from 2024. This surge has placed additional pressure on household budgets, with many parents making sacrifices to afford basic education costs.
Major expenses beyond fees
Although school fees and levies account for just 8% of the total education cost for public schools, ancillary expenses such as uniforms, electronic devices, extracurricular activities, and transport dominate the bill, a report from ABC highlighted. These costs have made education a financial challenge even in the public system.
For families choosing Catholic or independent schools, the financial burden is even greater. Catholic education is projected to cost $193,666 over 13 years, while an independent education will cost $350,158.
Sarah McAdie, Futurity Investment Group’s executive general manager of corporate affairs, attributed much of the increase to the rising cost of living.
“When we spoke to parents, they told us that they’re making decisions around the entire family budget to ensure they can send their children to the school of their choice,” she told the ABC. “One in four parents told us they’re sacrificing family holidays, nearly 30% said they’re going without buying something for themselves and 22% said they’re working more hours than they’d like to.”
Parents feeling the pressure
The financial strain is deeply felt by families across the nation. In New South Wales, for example, Sydney families face the highest public school costs, with a 59% increase in estimated expenses from last year. Regional and remote areas are also affected, with costs such as transport and specialised equipment adding to the burden.
Belinda Giblin, a Penrith mother, shared with the ABC the challenges of budgeting for her two children’s education. “I started last year buying additional school uniforms for my daughter and I’ve probably still got another two or three hundred dollars’ worth of uniforms that I’ll need to buy before the school year starts, unfortunately,” she said. Giblin also shared how unexpected expenses like excursions often come with little notice, complicating financial planning.
Solutions and support
Experts argue that additional support is key to assist families navigating these rising costs. Damien Ellwood, president of the Australian Council of State School Organisations, highlighted how many parents feel pressured to pay “voluntary” school fees. “Families felt that if the schools didn’t receive that money, the children wouldn’t get access to the basic education that they needed,” he said.
Ellwood emphasised the need for schools to minimise costs by allowing generic uniform items and rethinking the necessity of high-priced equipment. He also called for broader, accessible support mechanisms to help struggling families.
Experts recommend long-term planning and saving to alleviate financial stress. According to McAdie, “’t’s really important to plan and save for these costs, if you know what they are then you can prepare for them, fees are just one component of a school education cost.”