The rising cost of education in New Zealand

2017

The cost of a state education in New Zealand has climbed to $38,362 in the past 10 years, according to exclusive research released today. Private education costs have also soared over the past decade, with costs increasing by nearly 50 per cent .  

JohnVelegrinisThe ASG Planning for Education Index discovered that for a child born in 2017 the estimated cost of a 13-year private education across New Zealand is $345,996, a jump of $112,318 compared to a child born in 2007 ($233,678). The estimated cost of a state integrated education has risen by 34 per cent over the same period to $109,354, and the cost of a state education has climbed 15 per cent in the past 10 years to $38,362.

The ASG Planning for Education Index, which is independently verified and based on almost 2,000 responses, measures a range of variables including school fees, transport, uniforms, computers, school excursions and sporting trips to determine the costs of education.

The ASG research supports the results of a recent survey by PureProfile and commissioned by Postie+. Of the 500 parents surveyed, 22 per cent are sacrificing basic necessities in order to meet their children’s back-to-school needs, such as uniforms and stationery. Around 72 per cent said they found school uniforms too expensive.

ASG CEO John Velegrinis (pictured) says New Zealanders are fortunate to have excellent state, state-integrated and private schools to choose from, but costs can spiral out of control.

“If you have three children, the cost of educating them in New Zealand’s private education system could top more than $1 million. That’s significantly more than the purchase price of the average family home.

“We advocate parents use a disciplined approach by putting a little bit away each week so they can financially afford to meet their children’s educational goals and aspirations,” said Mr Velegrinis.

New Zealand parents fare better than Australian parents, who can expect to pay significantly more for their children’s education across state and private schools over 13 years.

The ASG Planning for Education Index reveals for a child born in 2017, Australian parents could pay up to 88 per cent more, or an extra $33,558, to send their child to a state school in metropolitan Australia. The difference in the forecast cost of a private education between the two countries is 48 per cent with Australian parents expecting to pay $164,575 than New Zealand parents.

Mr Velegrinis says the cost of education in New Zealand has risen by double the rate of inflation over the past decade.

“This is quite significant because the underlying trend is that this gap between the costs of education and the CPI is continuing to expand over time. Independent research predicts the cost of education will increase, irrespective of whether you send your child to a state, state integrated or private school.

“Estimated costs for a state education in New Zealand have risen by 15 per cent over the last decade, and costs for a state integrated and private school education have gone up sharply by more than $27,000 and $112,000 respectively.” 

Independent statistician and Managing Director of foreseechange Charlie Nelson said a range of economic factors influence the cost of education.

Employment growth, hourly wages and inflation all impact the cost of living, which puts extra strain on the family budget.

“With school fees likely to rise further, it has never been more important for parents to financially plan for their child’s future.”

Estimated average costs to educate a child born in 2007 and 2017 across New Zealand

 

2007

2017

%

State

$33,274

$38,362

15

State Integrated

$81,765

$109,354

34

Private

$233,678

$345,996

48

 


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