A Parent’s Guide to Affording Private School: Financial Planning Tips

There are wonderful schools, both public and private, committed to offering the best experiences and quality education for our children across the country. In some cases, private schools may align better with your family’s personal values, religious affiliations or belief systems. When exploring the options, choosing the right school for your child is a big decision!

For our family, private school felt like the best fit. We were drawn to the small class sizes, the personalized attention, and the unique programs that aligned with our values. But let’s be real, the tuition gave us a bit of sticker shock!

We knew affording private school wouldn’t be easy, but we were determined to make it work. After all, education is a core value in our family, and having identified a specific private school that suited our objectives, we rolled up our sleeves and dove headfirst into the world of private school finances.

What We Learned: The Real Costs and Benefits of Private School

In addition to tuition, the following fees can increase the overall cost of attending a private school:

• Before and After School Care*
• After School Activities*
• Meals*
• Summer Camps and Activities*
• Uniforms: Multiple sets are often needed as children grow, making uniforms a recurring cost. However, uniforms can end up costing less than buying clothes to stay on trend. Many private schools offer uniform swaps and sales to help newer families build up their uniform wardrobes and promote recycling gently worn pieces.
• Transportation: Bussing services offer convenience — at an added fee. Check your local school district to see if bussing is included to the private school itself or to somewhere nearby. Some counties have contracts with private schools to offer bussing.
• Longer Spring Break: More time off during spring break may require additional childcare arrangements.
• School Trips: Private schools may offer more opportunities for travel, and international trips for older students can be expensive. However, exposing kids to these opportunities can pique their interest, teach them to save for a special class trip, and expose them to new cultures.
• Boarding: Room and board are significant expenses for boarding schools.

*Costs apply to both public and private schools; however, they may be higher for private schools.

Strategically Planning for Private School Costs

1. Calculate All-In Costs and Project Future Increases: When budgeting, factor in annual tuition increases of 5–10%.
2. Explore Financial Aid Options: Even high-income families may qualify, so don’t hesitate to inquire.
3. Scholarships: Many schools offer scholarships and grants to exemplary students in various fields (sports, theater, etc.).
4. Discuss the Investment with Family: Open communication can lead to financial support from relatives or friends.
5. Evaluate Payment Plans: Compare options like lump sum payments (sometimes with discounts) or monthly/quarterly installments.
6. Create a Long-Term Cash Flow Plan: Account for annual cost increases and assess the long-term feasibility based on your income and expenses.

Critical Factors Often Overlooked When Saving for Education

• Enrollment Contracts: Scrutinize withdrawal terms and deadlines to avoid unexpected financial obligations.
• 529 Plan Usage: While usable for K–12 tuition, prioritize these funds for college expenses. Check out this previous article for more information.
• College Savings: Don’t neglect saving for college while budgeting for private school. The planning you do now for private school will help with planning for college.
• School Continuity: Confirm the school’s grade levels to plan for potential transitions.

How a Financial Advisor Can Help with Affording Private School

Navigating the financial complexities of private school can be overwhelming, but also keep in mind that the planning you do now for private school will help with planning for college. A Merriman advisor can provide personalized guidance, help you create a comprehensive cash flow plan, and ensure your decision aligns with your broader financial goals.

Take advantage of our free consultations to assess your specific financial situation and address any potential blind spots. (Take our financial Blindspots Quiz to see where yours are! We’re here to support you in making informed decisions about your child’s education and financial future. Book an introductory meeting today. There is no cost or obligation, and we can discuss your needs to determine the best means for securing your child’s private school experience in addition to your overall financial life.

Disclosure: All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Merriman cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Merriman does not provide tax, legal or accounting advice, and nothing contained in these materials should be taken as such.