Lifeplan responds to rising costs
The cost of educating a child has jumped by 4 per cent in the 12 months ending September this year, according to new figures from the Australian Bureau of Statistics (ABS).
This compares to a rise of 1.9 per cent in the same period for the cost of living.
Lifeplan Funds Management general manager of strategic development Matt Walsh said the new figures show parents and grandparents are under increasing financial pressure to educate their children.
“This continual, rising financial burden is leaving more and more parents wondering how they are ever going to afford to educate their children,” he said.
“We are seeing continuing enquiry and investment by grandparents [to] give their own children financial support to assist with the costs of their grandchildren’s education.”
Lifeplan is one of three Australian financial services companies providing education bonds that offer tax savings while parents and grandparents save for their children’s education.
Walsh said his organisation is seeing more and more grandparents dipping into their personal savings to help pay for education.
“While there’s a lot of talk about rising lifestyle costs such as housing, household services and consumables; education remains the forgotten financial issue,” he said.
The latest ABS figures reveal pre-school and primary education costs rose by 2.2 per cent during the 12 months ending September 30.
Secondary education rose by 7.1 per cent and tertiary education costs rose by 2.6 per cent.
Walsh said the major political parties have released plans to help parents cope with the cost of education, but these moves will not cover all costs.
“Families still need to consider their own circumstances and have private arrangements to meet these costs,” Walsh said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
