Public vs Private School: The Real Costs, Trade-offs & How to Plan

By Molly Benjamin, Founder of Ladies Finance Club

Listen to the full podcast here.

Private or public school, which is really worth the cost? 🤔

In this episode of Get Rich, I sit down with financial adviser Alex Luck from Everest Wealth to unpack the true cost of education in Australia. They break down what families actually spend on school fees, how to budget for education, and smart investment strategies to make the numbers work without losing your sanity (or your savings).

The Rising Cost of Education in Australia

Whether you choose public schooling or private schooling, education is one of the biggest long-term expenses for Australian families. Alex notes that the cost of private education has risen by nearly 88 per cent since 2010, making it a major financial decision for parents.

• Public education costs: Around $90,000 over 13 years.
  
• Private education costs: Around $330,000 for the same period, more than triple the price tag.

Even families opting for government schools face growing education costs -  think uniforms, tech, excursions, and sports programs. “Free” schooling still adds up fast.

Private vs Public: What Are You Really Paying For?

There’s no single right answer, it depends on your values, location, and lifestyle. While private schooling can offer smaller class sizes or specialised programs, Alex reminds parents that “paying more doesn’t always mean better outcomes.”

He also raises an often-missed factor: social expectations. Expensive schools can come with lifestyle pressures - overseas holidays, branded uniforms, and high extracurricular costs that can stretch family budgets even further.

How to Financially Plan for School Fees

Good financial planning can take the stress out of choosing a school. Alex recommends:

• Start early. The sooner you plan, the more time your money has to grow.
  
• Know your numbers. Understand the full cost, not just tuition but uniforms, camps, laptops, and activities.
  
• Set up a system. A dedicated education savings account or automatic transfer makes saving consistent and painless.
  

Even small investments can snowball over time. For example, investing $500 a month from birth at 9 per cent annual returns could grow to $130,000 by age 12 - enough to fund private high school fees.

Smart Investment Strategies for Education

Alex explains several investment strategies and structures families can use:

• Trusts: Ideal for households where incomes fluctuate, you can distribute earnings to the lower-income earner to reduce tax.
  
• Education bonds: A type of investment bond designed for long-term education costs. When structured properly, these can offer potential tax advantages, though they’re not a magic “tax-deductible” solution - professional financial advice is key.
  
• Direct investing: Building a diversified share portfolio over time (for example, via index funds) can offer flexibility if plans change, say, if your child ends up choosing public school instead.
  

Budgeting for Education: What Families Overlook

Parents often underestimate the extras. On top of tuition, the average Australian family spends about:

• $1,200 a year on school supplies
  
• $1,700 on uniforms, excursions, and camps
  

Alex’s tip: “Plan for the full experience, not just the school fees.” Budgeting for education means accounting for every cost, from lunchboxes to laptops.

Public Schooling: A Smart Financial Choice

Public schooling in Australia has improved dramatically, offering quality education without the six-figure price tag. For many families, the Australia education system provides great local public schools that allow them to redirect savings into property, investments, or early retirement.

Alex highlights this trade-off: “The $200,000-plus difference between public and private schooling could knock years off your mortgage or fund your retirement a decade earlier.”

Saving Hacks for Back-to-School Season

Not all money wins require big investments. Some of the best budgeting for education hacks include:

• Buying second-hand uniforms or joining school swap groups.
  
• Starting the back-to-school shop early to spread out costs.
  
• Purchasing stationery and tech in bulk or during EOFY sales.
  
• Setting up a sinking fund for annual school fees and excursions.
  

At the end of the day, education costs are an investment in your child’s future but it’s also about protecting your family’s financial wellbeing. Whether you choose private or public, the key is to plan ahead, invest wisely, and budget realistically.

Start early, get financial advice, and explore options like education bonds or trusts that fit your family’s goals. Because when you manage money intentionally, you don’t just afford school, you set your kids (and yourself) up for a richer life.

 Plus, a huge shoutout to our sponsor, InvestorKit! Australia’s #1 Buyers Agency for 2023 and 2024. They specialise in helping investors find high-growth properties utilising industry leading AI and data driven research process across Australia. 70%+ of the properties they purchase are off-market and they have consistently outperformed national average capital growth rates by over 49%. Whether you’re looking to build your property portfolio or secure your first investment. Check them out here.