Rising private school fees
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Ryan Watson in the AFR on rising private school fees
As private school fees continue climbing well above inflation, many Australian families are being forced to rethink long-term education plans.
Tribeca Financial CEO Ryan Watson recently featured in the Australian Financial Review, sharing insight into how families should realistically plan for rising school costs.
Planning for education
In the AFR feature, Ryan explained that school fees are no longer tracking anywhere near typical inflation assumptions.
“We now use 8 per cent as the inflation rate relating to school fees as we are seeing private school fees track well above the standard inflation rate,” he said.
Ryan noted that in the past, advisers may have assumed 3 per cent annual increases when modelling education costs. But with fees rising significantly faster in recent years, that assumption no longer reflects reality.
For families with children years away from high school, even small differences in annual increases can dramatically change the total cost over time.
The message is simple: when planning for private education, conservative assumptions can leave you exposed. Realistic modelling helps avoid surprises — and gives families clarity about what’s sustainable long term.
Australian Financial Review
For more than 65 years, The Australian Financial Review has been the authority on business, finance and investment news in Australia. It has a reputation for independent, award-winning journalism and is essential reading for Australia's business and investor community.