News | Finance
Dollars for sense The cost of education in New Zealand has soared 42 percent in the past decade, almost double the 22 percent rise in wage growth in the same period. This is the conclusion of the ASG Planning for Education Index study, independently verified by Foreseechange in Melbourne, and based on more than 2,000 responses. It discovered that for a child born in 2018, the estimated cost of a private education across New Zealand is $360,074. The forecast cost of a state integrated education could cost parents $102,730 per child, while the estimated cost of a state education is $38,227. The estimated cost of a private education across New Zealand has soared by 42 percent or $106,267 in the past 10 years. The cost of a state integrated education has jumped by 30 percent or $23,439. The estimated cost of a state education has climbed by 13 percent or $4,451 since 2008. On a positive note, while education costs continue to rise, the rate of
increase has declined relative to last year for state integrated and state education. As a result, a drop in the forecast cost of education has been noted in both these sectors. The fall in the forecast cost of education has been heavily influenced by slower price rises within secondary and primary education.
emphasise, the actual costs associated with sending your child to any school in New Zealand continues to increase each year.” School fees continue to be a major education expense, but many parents fail to appreciate the additional expenses associated with funding a child’s education. This includes extracurricular activities, computers,
“In the past decade the cost of education has grown markedly, by 42 percent, compared to the average growth rate in wages of 22 percent." - ASG_COO Bruce Hawkins
ASG COO Bruce Hawkins says the cost of education has risen at more than double the rate of inflation over the past 10 years and has outstripped the growth in wages over the same period. “In the past decade the cost of education has grown markedly, by 42 percent, compared to the average growth rate in wages of 22 percent. “This means that education costs are demanding a far greater share of the family wallet than in the past, placing more burden on the average family, already challenged by the rising cost of living. “It is pleasing to see that low inflation is having a positive impact on costs for state and integrated schools, but I must
travel expenses, uniforms, school excursions and camps. ASG's Planning for Education Index forecasts that parents who plan to educate a child in the private school system over 13 years, could pay $54,784 for other non-fee education costs. This is significantly more than parents with children at state integrated schools ($39,614) and state schools ($29,330). In comparison to Australian parents, New Zealand families don’t have to dig as deep into the family budget, with Australian parents paying a premium for 13 years of schooling across state and private sectors. The Index reveals for a child born in 2018, Australian parents could pay
almost double (90 percent), or an extra $34,501, to send their child to a government school in metropolitan Australia. The difference in the forecast cost of a private education between the two countries is 45 percent, with Australian parents expecting to pay $161,200 more than New Zealand parents. ASG member Mele Kautoke sends her three children (Vaiola, Year 5), (Filomena Year 4), (Alfred, Year 1) to a Catholic primary school. She says it’s hard to keep up with the costs of education and other living expenses despite her and her husband both working full time. “We’re constantly behind in school fees, because we’re also paying kindy fees for Matthias (two years old). So with four children to put through Catholic school, it’s a constant battle and there’s not much assistance for middle to high income families. “Sometimes it feels like treading water, although it’s a necessary evil, as is shelter, food, water and power, so it’s just another thing you have to keep on top of. “Our children don’t do as many extracurricular activities as we’d like them to and we’ve never been able to put them into swimming lessons because it’s just too expensive. But they’re involved in hip hop classes and rugby, which is more affordable, and Vaiola has guitar lessons which is about $300 per term."
Hassle-free bookkeeping Education Services Ltd is a private company that specialises in providing accounting services to schools. “We currently have over 680 school clients – we are the largest school accounting provider in New Zealand.” Why do so many schools use education services? The reasons are many, and varied – but some common themes keep coming up again and again. 1) Cost – contrary to popular belief, it is cheaper to outsource your accounting and creditor payment functions than buying some software and paying someone wages to complete those functions. 2) Peace of mind – we have not met too many principals who want to spend time learning the dark arts of the accounting world. Funnily enough their passion is education – so by outsourcing to Education Services they know everything is done on time, every time, be it paying your bills, doing monthly reports for boards, GST returns, asset registers, and annual accounts to audit. We lessen the admin load at the school.
3) Fraud and misappropriation – by getting Education Services to pay your bills, you know the money is going to find its way to the right person – not “someone else’s” bank account. We independently check the bank account is correct for your creditors. Ninety percent of school fraud and misappropriation happens at schools where an employee pays the school bills...food for thought. 4) Advice and assistance – you have an expert on call whenever you need us, and a second pair of eyes helping you manage your school finances. 5) And finally – our reports are school specific, not a business report that is not fit for purpose. Our reporting, be it real time or hardcopy is second to none. Can you afford to not have Education Services partner your school?
Financial Reporting Education Services provides a Financial Reporting Service to over 660 New Zealand schools - we are the largest provider of accounting services to school’s in New Zealand - and would love the opportunity to help you. Take all the worry out of Financial Management (Including completing your Annual Financial Statements in the new reporting format with ease) and have everything done on time, every time and done right! We have an office and personnel near you: Whangarei, Auckland, Hamilton, Rotorua, New Plymouth, Whanganui and Wellington. If you would like a no obligation quote to compare the cost of our service to what you are currently receiving, or would like to enquire exactly what our service involves, please phone:
Pete on 06 757 5489 or email: pete@educationservices.co.nz www.eductionservices.co.nz www.principalstoday.co.nz Term 2, 2018 | 9