Australia: Navigator takes the sting out of expensive schools fees

The advent of the school year often brings with it extensive fees and costs associated with any schooling, be it public or private.

Those families choosing to send children to private schools may be looking at annual fees between $5,000 for primary school children and $15,000 for secondary school¹.

“This is a lot of money in anyone’s language and the beginning of the school year can often be a financially stressful time,” said Rob Donaghy, Aviva’s director of products, marketing and public affairs.

For example, sending two children to one of Australia’s top private schools may cost up to $650 per week for two children or $975 per week for three children. (Figures based on tuition fees in secondary school ranging from $11,000 to $15,000 a year for a 40 week year with children attending different year levels. Does not include additional costs of uniform, books and other additional charges)².

Investing for your children’s education early in their lives (preferably well before they begin school) is one method of alleviating some of the stress associated with school fees.

By investing an initial $5000 and then contributing $250 a month into a Navigator Personal Investment Plan (PIP) for 10 years you would have an investment of more than $52,000 which could then be accessed for school fees.

Figures assume a net return after fees and taxes of seven percent with no up front fees or withdrawals.

“By thinking about school fees before they actually happen you can ensure you are well and truly prepared for any annual outlay,” said Rob.

Some private schools also offer discounts for fully paid annual fees, so by ensuring funds are available straight away rather than relying on payments plans through the year you are actually saving money.

It’s not only families with children attending private schools who will encounter fees at the beginning of the year.

Fees for public schools, while significantly less than those of most private schools, may still seem out of reach for some families, post the expensive Christmas and holiday period.

With a Navigator PIP you can invest regularly with as little as $250 a month and start saving for your children’s education. With a minimum initial investment of $3,000 you can invest in the PIP and the funds are available when necessary instead of being locked away.

Making these education expenses part of the regular family budget ensures the money is available when needed instead of being hurriedly collected at the last minute.

“There are many different schemes to help families save for school fees but often this means locking away the money. At Navigator we realise that sometimes the unexpected happens, so we ensure your money is available when you really need it,” said Rob.

“Investing is really about being prepared for the future and planning ahead takes so much stress out of the financial issues associated with schooling. Parents can comfortably enrol their children into the school they think best meets their needs and know they can afford to pay the fees,” says Rob.

For further information on a Navigator PIP please contact a financial adviser.

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¹ 2004 Independent Schools Directory in Melbourne, Melbourne’s Child, March 2004.

² 2004 Independent Schools Directory in Melbourne, Melbourne’s Child, March 2004.

For further information please contact:

Simon Morgan
Group General Manager Public Affairs
Phone: (03) 9829 8892
Mobile: 0407 966 632.

Notes to editors:

• Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in wealth creation and wealth protection for more than 300,000 customers in Australia.
• Globally, Aviva Australia is part of Aviva plc, the world’s fifth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
• Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$74 billion, and more than A$592 billion of assets under management (as at 17January 2005). Worldwide there are more than 51,000 employees and 30 million customers.
• The information in this document reflects Navigator Australia Limited's ('Navigator’) understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. Applications to invest in a financial product issued by Navigator, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Navigator or your financial adviser. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances. Aviva does not receive any remuneration in relation to the provision of information available from this press release which is of a general nature only.