Discretionary spending hack in uncertain times
What happens when your disposable income takes a hit from an economic crisis? You cut back on discretionary spending.I have heard alot of colleagues and friends that have children tell me they don’t save on their child’s education, but in times like this, it might be wise to cut down on this and tuition if it makes up a huge chunk of your disposable income.
Now that the Australia property bubble have burst, families are trying hard to make sense of their money. They are officially paying mortgages that is vastly higher than their current house valuation, and that will take a toll on folks who didn’t plan about this scenario when they buy a new house during the boom.
July 13, 2008 04:04pm
A WAVE of private-school students is expected to flood the public education system in Queensland as families face increasing financial pressure.
Fee-paying schools are already advertising heavily for enrolments while offering concessions and payment plans for struggling families.
One north Queensland boarding school has lost 10 per cent of its pupil base in a year.
The trend could reverse a five-year move in Queensland toward private school education, which has seen enrolments rise nearly 30 per cent since 2001. About 219,000 students – or 32.4 per cent of the market – are enrolled in private schools, which charge $3000 to $20,000 a year.
It comes as we reveal the State Government is considering single-sex schooling and variable hours for state schools.
Lutheran and Anglican schools confirmed they had already lost families for financial reasons and were expecting an exodus of many more in the next two years.
Brisbane Catholic Education said it was also dealing with increasing numbers of parents unable to pay fees as mortgage, fuel and living costs hit home.
State Education Minister Rod Welford said he was aware that many were struggling in the private system and the State Government was preparing for a boost in student numbers.
He said: “We would need to ensure our facilities and teaching staff are well equipped for any surge in numbers.”
More than 455,000 students are enrolled in state schools, compared with about 440,000 five years ago. The growth has been put down to interstate migration and improved standards in the public system.
Mr Welford ruled out extra funding for private schools facing a revenue shortfall.
“Private schools are already heavily funded by the State and Federal Governments,” he said. “They provide an alternative option for some parents but they have to make up their own minds whether the alternative school they use is worth the additional costs.
“We are ready, willing and able to take any students who need to be accounted for in the state school system.”
Lutheran Education Queensland business manager Graeme Drapper said the situation was a double whammy as the cost of running schools was also rising and he called on the Government to boost funding.
Last year all Lutheran school fees rose by 5 to 10 per cent to cover rising operational costs.
Catholic Education spokesman John Phelan said some parents from their 286 schools across Queensland and 133 in Brisbane were under severe financial pressure but there is a policy of not letting students go for financial reasons only.
“Increasing costs of mortgages, rent and the general cost of living are having a severe impact on some families,” he said. “Families are coming to us because they really don’t want to take their kids out of Catholic education but they feel they have no choice. We don’t let that happen.”
Related posts:
- Discretionary Spending: Martial Arts school closes by 3200+ in May!
- The college student debt machine [Personal Finance]
- Orient Century
- There is absolutely nothing wrong with spending this way
- New York Times: The Debt Trap
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