Why early planning can make a meaningful difference for your family’s long-term financial security
Education is one of the most important long-term investments parents make for their children. At Continuum Financial Planners, we regularly work with families who want to provide the best possible opportunities for their children without compromising their own financial security. They are planning to meet the rising cost of education in Australia.
Recent research confirms what many families are already experiencing: the cost of educating children continues to rise faster than inflation, placing increasing pressure on household budgets. The key difference between families who cope and those who struggle is not income alone – it is planning.
Education costs are rising faster than inflation
According to Futurity Investment Group’s Cost of Education 2026 report, the total cost of educating a child from Kindergarten to Year 12 has increased again this year. School fees and contributions are now rising at approximately double the rate of CPI. When ancillary expenses such as uniforms, technology, excursions and extracurricular activities are included, the lifetime cost of education becomes significant.
Nationally, the estimated total cost of schooling one child from K–12 is now approximately:
- $113,594 for Government schooling
- $247,174 for Catholic schooling
- $369,594 for Independent or Private schooling
Costs are generally higher in capital cities and have risen most sharply in Queensland and Victoria. Importantly, while school fees often receive the most attention, ancillary costs can outweigh fees over time and are far less predictable if families do not plan ahead.
The hidden pressure of ancillary costs
Ancillary expenses are where many families feel the greatest financial strain. Items such as laptops, sports equipment, uniforms, tutoring, camps and before-and-after-school care can add thousands of dollars each year.
The 2026 report highlights that while many parents are attempting to reduce spending in these areas, overall costs remain stubbornly high. Alarmingly, 69% of parents reported making sacrifices elsewhere in their household budgets to meet education costs. This includes cutting back on holidays, dipping into savings, working longer hours, or delaying bill payments.
Planning early makes a measurable difference
The data clearly shows that families who plan ahead achieve better outcomes. Parents who intentionally budget, save or invest for education costs are more likely to:
- Enrol their children in their preferred school
- Feel they are receiving good value for money
- Rely less heavily on debt or emergency support
- Experience lower financial stress over time
Yet despite these benefits, only 53% of parents reported being truly intentional about preparing financially for education costs, and just 40% planned ahead before their child started primary school.
This gap between intention and action is where long-term financial pressure often begins.
Planning ahead: building a ‘Family Future Fund’
Education is consistently one of the largest components of the overall cost of raising children. One effective way to manage this is by establishing a dedicated Family Future Fund.
Consider two hypothetical couples. One begins saving and investing several years before their first child is born, setting aside a portion of their income into a structured savings or investment strategy. By the time school fees begin, they already have a meaningful capital base working for them.
The second couple delays planning until their child is born. To catch up, they are forced to save significantly larger amounts each year, often while juggling reduced income during parental leave and rising day-to-day expenses. In most cases, this later-starting approach is far more stressful and far less achievable.
The lesson is simple: time is one of the most powerful financial planning tools available, particularly when education funding is deliberately built into a long-term wealth creation strategy.
Choosing the right strategy
A Family Future Fund does not need to be speculative. Depending on your broader financial position, strategies may include:
- Structured savings plans or high-interest savings accounts
- Investment portfolios aligned to your time horizon and risk profile
- Insurance bonds or education-focused investment structures
- Using a mortgage offset account to generate an effective after-tax return
At Continuum Financial Planners, we work with families to identify the most appropriate solution. Factors such as income levels, existing assets, debt levels, timeframes and schooling preferences all need to be considered. What matters most is that the strategy is deliberate, reviewed regularly, and integrated into your broader wealth creation and investment plan.
Turning education costs into a long-term wealth strategy
Education costs are unavoidable for most families, but financial stress does not have to be. With the right advice, education funding can be approached as part of a broader wealth creation strategy rather than an ongoing cash-flow burden.
By planning early, investing appropriately and reviewing your strategy as circumstances change, families can preserve lifestyle choices, reduce reliance on debt, and make confident decisions about schooling without compromising their long-term financial security.
How Continuum Financial Planners can help
If you would like to understand how education costs fit into your broader wealth creation or investment strategy, the advisers at Continuum Financial Planners can help you put a clear and structured plan in place.
To book an appointment with one of our advisers to discuss your education funding and long-term financial strategies –
- Phone our office on 07-3421 3456, or
- At your convenience, use the linked Book A Meeting facility.
(This article was originally posted by us in January 2026. We occasionally refresh/ update it. most recently in February 2026-to add internal links.)