Financial Advice – How Do I Pay For Private School Fees?

Education is of course one of the most important gifts you can give your children. With some tailored financial advice, you can set them up for the best opportunity to achieve their goals in the future. The fees of educating your children can reflect this importance and become one of the largest expenses to your family.

We regularly field questions from people looking for financial advice to assist them to plan for future private school fees.

With many private schools increasing their fees at a rate of 4% per year (one by 6.7%!). It is so important to speak with a financial advisor in Melbourne to discuss an investment funding strategy for your children’s future.

How much could private school fees cost?

When prestigious schools combine tuition fees with textbooks, uniforms, IT levies, excursion levies and musical equipment – you may end up paying close to $500,000 per child over the course of pre-school, primary school and secondary school[1].

This may seem like a large amount, but with the right advice and a suitable time frame for the investments, the fees can become quite manageable.

What can I do now to prepare for my child’s private school fees?

There are several ways you can prepare now:

Could investing in insurance bonds be relevant to you?

Insurance bonds[2] are a special type of investment issued by some insurance companies. They provide an opportunity for parents to make regular savings contributions and can be a very tax effective long term investment strategy if certain rules are followed. Earnings can be tax free if regular contributions are made to the account and no withdrawals are made in the first 10 years.

Tax Effective Investment Strategies

Depending on your situation, it may be beneficial to have the investment in the name of the lower income earner. Perhaps a family trust would be beneficial to minimise the tax payable by splitting any income earned between family members?

For decades, many Australians have accelerated their wealth accumulation by borrowing money to invest (also known as ‘gearing’). It can also be used with a regular installment strategy to build a nest egg over time. This strategy does however have a higher level of risk due to the additional exposure to growth assets.
By using investment lending, no property security is required as the security is taken over the shares instead. Tax benefits, dollar cost averaging and a disciplined savings plan can really make this worthwhile.

Speak with a financial advisor as soon as you can

There is an old saying ‘time is money’. It certainly rings true when funding a large expense in the future. By utilising compound interest in an investment account, your regular savings can quickly snowball into the funds you require to pay for your children’s education.

We’re happy to have an obligation free chat with you about your situation to find the most appropriate solution for your needs.

The investment landscape always evolves and it is more important than ever to consider your investments carefully. We pride ourselves on being experts in researching opportunities, investments and financial planning services that fit in with your goals.

For an obligation free conversation about your financial future, please contact us on 03 9603 0072 or at

Phillip Richards and Robert Rich
Endorphin Wealth Management

Phillip Richards is a qualified Financial Advisor with over ten years’ experience. Contact Phillip today to discuss how you can build your own wealth and plan to reach your goals.

Robert Rich is a qualified Associate Financial Advisor with over nine years of personal investment experience. Contact Robert today to discuss how you can build your own wealth and plan to reach your goals.

This information is general in nature and does not take your personal situation into account.

Contact Us for quality financial advice so you can feel good about your future.

[1] ASG – How much could you expect to pay for your child’s schooling – Metropolitan Australia, Child born in 2017 –