School cost pressures passed on

RISING education costs means grandparents could be increasingly asked to dip into their savings to help pay for their grandchildren's schooling.

Family /AP

School cost pressures passed on

GRANDPARENTS could be increasingly forced to dip into their savings to help pay for their grandchildren's schooling.

Education costs in Australia have increased twice as fast as the official rate of inflation, according to Lifeplan Funds Management, which provides education savings plans.

"We are seeing continuing enquiry and investment by grandparents giving their own children financial support to assist with the costs of their grandchildren's education,'' says strategic development general manager Matt Walsh.

"While there's a lot of talk about rising lifestyle costs such as housing, household services and consumables, education remains the forgotten financial issue.''

Figures from the Australian Bureau of Statistics show that in the 12 months to September 30 the cost of education jumped 4 per cent while the general cost of living increased by 1.9 per cent.

Pre-school and primary education costs rose by 2.2 per cent, secondary education by 7.1 per cent and tertiary education costs by 2.6 per cent.

Lifeplan Funds Management says the education component of the Consumer Price Index at 4.1 per cent is the third highest percentage hike in the 12 months to last September.