Education costs are on the rise – but what can parents do?
Not much. Free education refers to education that is funded through taxation rather than tuition fees and even though primary schools and high schools in New Zealand are mostly free, there will still be hefty costs of uniforms, books, excursions and perhaps tutoring to consider.
There are a number of reasons for increased education costs. Teacher salaries have increased, but other factors include technology (hands up who has a tablet?), infrastructure, maintenance and smaller class sizes are all making education more expensive for governments and independent schools to deliver.
But there are tips for parents on how to keep education costs as low as possible, with a little bit of planning and research:
Plan your child’s education
Plan for the education choices you want to make for your child, and try to be disciplined enough to put aside a portion of your family income to pay for it.
Which school will meet the needs of your child, help him thrive and create a good fit with the family’s financial circumstances? Try to find value in education by selecting a school that matches your child’s needs and your own education preferences for your child.
Saving for the future
It’s never too late to start saving for your child’s education. Obviously, the sooner you start the bigger the nest egg, but better late than never!
Apart from traditional savings accounts and more complex investments like shares and bonds, there are specific education funds set up to help you put money aside for your child’s education. There are limited options in New Zealand, but ASG does provide a dedicated education fund.
Minimise school expenses as much as possible
Savvy shopping skills and some budget planning can go a long way to keeping ongoing expenses low. Learn the 9 ways to save on back to school shopping.
Find out how you can start planning and saving for your child’s education today.