Kids are terrible financial investments

The cost of education in Australia has risen a staggering 61% in the last decade, whilst child-raising costs have gone up by 50%. Meanwhile, our household incomes have only risen by about 25%, which means the cost of raising children is growing at double the rate of our average incomes. Yikes!

According to ASG Planning for Education Index 2018 released on 16 January 2018, the cost of education in Australia has soared 61% in the past decade and could cost a staggering $475,342 to educate one child through the private system.

ASG is a member owned organisation and specialist education benefits provider and provides estimates on the cost of education in Australia. It estimates the full cost of primary and secondary education for a child born in 2018 could cost $66,320 in the public system, while faith-based education was estimated to cost $240,676 per child.


Estimated average costs to educate a child born in 2008 vs 2018 across metropolitan Australia:

  2008 2018 % increase
Government/Public School $53,756 $66,329 23%
Faith-based school $156,104 $240,679 54%
Private school $295,214 $475,342 61%

The figures include the cost of school fees, as well as an estimate for extra-curricular activities, computers, travel expenses, uniforms, school excursions and camps. Interestingly, the Australia Bureau of Statistics’ Household Expenditure Survey also supports this rise in education spending in their report released in 2017 which found costs rose by up to 44% in the six years between 2009-10 and 2015-16 mainly extra spending on school fees.

The ASG research “reveals a child’s education is one of the most significant investments a family could make. If you have three children, the cost of educating them in Sydney or Melbourne’s private education system could top $1.6million. That’s significantly more than the purchase price of the average family home.”


Can you afford not to have an insurance protection plan?

Nobody likes to think about worst case scenarios.  However, when you are responsible for a family, it is important to always have a Plan B.  If something happened to you, could your family afford the cost of raising children and the increasing cost of education, along with home and car loan repayments, credit cards and other household bills?

Taking out insurance, and maintaining it, can help you to negotiate life’s curveballs. The great thing about having a plan in place is that if you have an accident and are not able to work, this plan can help ease some of the financial burden on you (so you can get better) and on your family (so they can carry on with normal life).


If you would like help with preparing for a new baby, budgeting for private education costs, or looking at insurance to protect your wage, please book online or contact us on 

Fortress Financial Solutions founder Chris Black is an award-winning financial planner based in Toowoomba who specialises in superannuation, investing, business succession, cash flow management, retirement planning and personal insurances (including life insurance, income protection, total permanent disability and trauma insurance).

Complied by Emma Linton Doig, Practice Manager at Fortress Financial Solutions.

Fortress Financial Soultions Pty Ltd is a Corporate Authorised Representative of Magnitude Group Pty Ltd ABN 54 086 266 202, AFSL 221557.


This article was published update by CommInsure.

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