How to Reduce School Costs In 2023

October 30, 2019 · Last update: 03/05/2023

Table of Contents

Introduction

Back in the old days, sending your child to a state school in New Zealand was practically free. But as the years went by, things changed, and the cost of education started to rise. In 2023, inflation has driven up the cost of a child’s education by 15%, making it a financial challenge for many households. The reality is that parents who had children in 2019 will need to pay up to$40,000 for their child’s education. That’s a lot of money, especially when you consider the cost of living and the average household income. For many families, this represents a significant financial burden.

It’s not just the tuition fees that are costly. Parents also need to factor in the cost of school and PE uniforms, textbooks, stationery, sports trips, and extra-curricular activities. All of these expenses add up, putting a squeeze on household budgets.

But there are ways to tackle the rising cost of education, so keep reading an we’ll uncover some handy tips for Kiwi families.

The Many and Varied Costs of Schooling

The cost of schooling goes far beyond tuition fees. Parents also need to factor in the cost of school and PE uniforms, textbooks, stationery, sports trips, and extra-curricular activities. All of these expenses add up, putting a squeeze on household budgets.

Furthermore, with the rise of technology in the classroom, parents are also expected to provide their children with the necessary devices, such as netbooks or laptops. While these devices are crucial for education in the digital age, they can also be a significant expense. In addition, parents may find themselves unexpectedly needing to replace these devices due to breakage or other issues, adding even more to the financial burden.

Schools may offer payment plans to help spread out these costs, but even then, it can be challenging for families to keep up. That’s why it’s essential for parents to be proactive in finding ways to reduce the cost of schooling wherever possible.

Using a Dedicated Education Savings Provider

One way to start gaining ground in the challenge to prepare for the future is to consider using a dedicated education savings provider to plan for the future. However, there is a surprising lack of similar providers in New Zealand. For parents, this means adopting a disciplined savings habit, putting aside realistic and regular small sums of money.

By using a dedicated education savings provider, parents can ensure that they are putting aside money specifically for their child’s education, and that their savings are earning interest over time. Although there are only a few providers in New Zealand, it’s worth exploring the options available and considering whether this approach could work for your family. By starting to save early and consistently, even if it’s just small amounts, parents can help ease the financial burden of education expenses and ensure their child has the best possible start in life.

Top Tips to Reduce the Financial Pressure of Schooling

There are various ways to reduce the financial pressure of schooling in New Zealand. Parents can join school parent groups to buy and sell second-hand uniforms and other items. Using automatic payments to make regular payments across the school year is also a great way to spread out the cost of school fees and other expenses. Fundraising is another excellent way to generate funds for school-related expenses.

Financial Support Options for Low-Income Families

Here are some practical tips to help reduce the financial pressure of schooling:

Join a Facebook group for parents at your child’s school. These groups are often used to sell uniforms that children have outgrown. You can usually get a bargain since parents don’t want to ask for too much money for second-hand clothing, and some may even give them away for free to the first person who asks.

Use automatic payments through your online banking to make small, regular payments throughout the school year to cover school fees, sports fees, and one-off expenses such as camp fees.

Ask other tech-savvy parents about the required devices for school. Sometimes, parents buy expensive devices that exceed the minimum requirements for school work. Cheaper alternatives that meet the minimum requirements work just as well and may be less costly to replace if damaged or lost.

Consider fundraising for school events and sports trips. Popular options include selling sausage sizzles and chocolate bars, but there are plenty of creative ideas available online, such as those found on Fundraising Ideas NZ and the Eventbrite blog.
Explore your options for financial assistance. The Salvation Army, City Mission Christchurch, J R McKenzie Youth Education Fund, Make it Happen Christchurch, Variety, and Work and Income all provide financial support for low-income families to help with back-to-school expenses like uniforms and stationery. These organizations may offer a recoverable assistance payment or an advance benefit payment to help cover costs.

Consider a personal loan to spread the cost of expenses across the year. Of course, there will be interest costs, but perhaps this is the difference between your children going without, or not.
Another option that could be better than a personal loan, is debt consolidation that factors in an additional amount to cover your expenses. Often, debt consolidation combines your current debts, and lowers your overall interest rate and penalty fees. This could save you money in the loan run under the right circumstances while relieving cash flow pressures.

By following these tips and being proactive about finding financial assistance, parents can better manage the costs of their child’s education while still providing them with the resources they need to succeed. According to Caroline Mareko from the Salvation Army, “Low-income families often feel a lot of pressure when it comes to their children’s education. It can be challenging to make ends meet, especially with the rising cost of living. That’s why we offer back-to-school bill support to help families cover the cost of uniforms and stationery, so their children can attend school with dignity and pride.”

Conclusion:

In conclusion, the rising cost of education is a challenge for New Zealand families. By adopting a disciplined savings habit, exploring fundraising opportunities, and seeking available financial support options, parents can reduce the financial pressure of schooling and give their children the education they deserve. As a community, we need to work together to ensure that every child has the opportunity to succeed.