There is no better investment that any parent can make for their child’s future than education. However, being part of a family in Australia means incurring quite a few expenses, which are further complicated by rising tuition fees at Australian schools. Fortunately, there are various ways for families to secure financial support for their child’s education journey.
School-based scholarships and grants
There are many private, Catholic, and public schools across Australia that provide scholarship schemes funded from their own pockets. These scholarships are mostly awarded on merit or talent, whereas bursaries are typically awarded on the basis of need, or equity and inclusion. It’s important for parents to inquire about various forms of financial assistance when attending school open days. Different options may include:
- Academic scholarships: These scholarships are offered to students who display exceptional performance in academic activities as well as entry exams.
- Co-curricular excellence: These are offered to students who excel in non-academic activities, such as high-level sports, music, and performing arts.
- Hardship bursaries: They provide fee relief for families experiencing financial hardships temporarily or permanently, so a child’s education isn’t affected.
- Equity and diversity funding: Many schools focus highly on diversity and offer indigenous scholarships to encourage First Nations students to join the best facilities and boarding programs.
- Government Allowances and State-Based Concessions
Thanks to the efforts of the Australian Federal and state governments, there are various financial buffers available to help families cover the expenses associated with raising and educating children.
For instance, Services Australia (Centrelink) offers parents grants, such as Family Tax Benefits Part A and B, which assist in covering general costs associated with caring for children. For teens aged 16 and above who are entering their later years of schooling or transitioning to tertiary education, Youth Allowance plays a vital role.
Similarly, some education rebates are also offered by state governments. For instance, in Queensland, parents are able to receive the Textbook and Resource Allowance, which is directly paid to the school to assist with the cost of educational resources for students attending high school. And there are also some travel-related rebates available, such as the School Transport Assistance Scheme (STAS).
The objective of government allowances is to provide assistance for current and direct expenses. These concessions reduce the cost of purchasing expensive books, advanced calculators, and technological gadgets, such as iPads or laptops, ensuring that all students are well prepared when they attend classes.
Tax-effective education bonds
An education bond or an investment bond is also a great option for parents to achieve their savings goals as they prepare for the expenses that come with sending their children to high school.
Education bonds provide peace of mind. However, it’s vital to establish it early in your child’s life and contribute modestly each month. Parents will earn interest through compounding for several decades. Once your child enters their expensive high school years, you will have an available source of funds set aside specifically for that purpose. This approach can help families avoid dipping into their retirement funds or acquiring high-cost loans.
Endnote
Dealing with the costs of education is not easy for parents and requires a combination of short-term and long-term planning. By using the methods mentioned here, parents can give themselves a chance to secure funds to support their child’s academic journey and set them up for a successful future.
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