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Date Published : Thursday, January 31, 2008
One in ten parents who send their children to private schools use over half of their monthly pay to fund their child's education, new research has revealed.
Bank accounts across Australia are being dredged to fund private education, forcing many families with extra debt burdens, a study by BankWest has found.
The survey also found that more than half of those who send their children into private schooling find that the cost of education was a financial strain on the family, dispelling the myth that private education is only for the well off.
Rising education costs, for uniforms, stationary and fees, have been blamed for the increase in debt problems, with a number of parents adding the extra expenditure to their credit card bills.
The study revealed that many parents considering private education's for their children do not have much money deposited in savings accounts, while older parents who have a more stable career are the most likely to be able to fund such an education.
BankWest's head of retail deposits Paul Vivian said: "However, what is surprising is the fact that a very small percentage of families saved for their children's education.
"Given the financial strain of paying for schooling, it is baffling that more people don't plan ahead and establish a savings plan."
Earlier this month, research from the Australian Scholarships Group revealed that preschool childcare could cost as much as $6,952, with many parents using credit and personal loans to aid their child's educational development
Australian savings accounts compared and reviewed.
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