Families could spend more than $300,000 on their child’s education according to a national costs forecast.
The ASG 2016 Planning for Education Index, released on 22 January, estimates how much parents of children born this year will need to save for public, integrated and private schooling in New Zealand.
The index, based on a survey of about 2000 families from across New Zealand, calculates the cost of 13 years of education, based on location, school fees, transport, uniforms, computers, school excursions and sports.
For a child born in 2016, the forecast cost of a private school education in New Zealand is $326,773, integrated schooling is estimated to cost $104,437 and state schooling is estimated to be $37,113.
ASG CEO, John Velegrinis, says it has never been more important for parents to plan for their child’s future.
"This is clear evidence that the increasing costs of education are putting strain on the family budget," he says. "If you have two or three children, the cost of their education could be higher than the purchase price of the family home."
Charlie Nelson, Independent statistician and managing director of Melbourne company Foreseechange, says school fees are increasing faster than incomes.
The index reports parents of secondary school children have spent 12 per cent more on computers in 2016 compared to last year. However while parents are spending more, the cost of computers (CPI) actually decreased in the past year.
The sooner you'll start planning and saving for your child's education, the more choices you will have. Consider all possible savings solutions and seek advice.