Jacqueline Barton

It’s not realistic to put a dollar sign on the cost of your child’s or grandchild’s future. But calculating the cost of education can help you draw a close enough estimate particularly in relation to the type of schooling you want to be able to afford them.

If you’re considering private school options, school fees are a major cost and have trended faster than the rate of inflation. Additionally, there’s uniforms, textbooks, extra-curricular activities and trips – that also need to be factored throughout the 13-year school journey. It’s also worth considering how the costs compare across school sectors if you are in two minds about school type.

Source: Futurity Investment Group Planning For Education Index 2025

It doesn’t stop there though. Post-secondary pathways could see your child or grandchild consider a slew of avenues ranging from University through to vocational training where course duration and costs vary depending on course type. Although the HECS-HELP study assistance loan is an option to delay payment of the core course fees, consideration to short-term study expenses such as textbooks and possible accommodation relocation requirements need to be given. There’s also the long-term impact HECS- HELP debt could have on your child or grandchild pursuing future goals and life events such as home ownership.

It sounds overwhelming and probably is, given that it might not be something that you’re even considering but planning and building a strategy to help you fund the costs and adequately cater for in your cashflow and budget.

Know your options

An obvious bit of advice is to do your due diligence and weigh up the benefits and downsides of various strategies.

Investing in a child’s name is generally not a sensible option – as any income (over $416) will be heavily taxed.

Another common strategy is to establish a share portfolio or savings account, with a parent acting ‘as trustee for’ their child. Interest/dividend income earned though is generally required to be declared in the name of the adult taxpayer, and when the time comes to accessing the investment for the educational purposes it was intended to serve, capital gains tax can represent a significant financial cost.

An often-over-looked option is the structure of an education bond. Designed to facilitate the entirety of an individual’s educational journey, education bonds can be contributed to by anyone and are taxed internally at the company tax rate of 30%.

Education Bonds: tax – effective product to fund education costs

A type of investment bond that if acquired through a friendly society or life insurer is classed as a ‘scholarship plan’ under Australian tax law. It enables the provider to receive a tax deduction for certain educational expenses, which the bond owner will receive in the form of a rebate when withdrawals are made to cover education costs.

Additionally, the capital invested is not locked in for educational purposes only. If circumstances change and other needs arise, funds are accessible for any purpose at any time, and control over how and where the money is invested is retained until it is withdrawn. Another feature is the estate planning benefits – the nature of the structure requires a beneficiary to be nominated, and in the event that the bond owner passes away, benefits can still be maintained via bond guardian.

Achieving peace of mind

Educational expenditure isn’t generally regarded as an activity that can be managed in a tax-effective manner, but it can be done and can allow you to re-allocate capital to other priorities is added bonus.

If you have any questions about how you can better prepare for the total cost of education, whether for your kids or grandkids, please get in touch.

Starting your career with a healthy salary is exciting, but many young Australian professionals stumble into preventable financial traps that can delay their long-term goals by years. Here are five common pitfalls to be aware of.

Buy-Now-Pay-Later debt spirals

Services like Afterpay and Zip make spending feel painless, but multiple Buy Now Pay Later (BNPL) commitments can quickly spiral out of control. What starts as “just four easy payments” becomes a juggling act of overlapping debts that eat into every pay. Unlike credit cards, BNPL isn’t always captured in credit reporting, making it easy to lose track of how much you truly owe. Before you know it, you’re living pay to pay despite earning well.

The new car money pit

Few financial decisions destroy wealth faster than buying an expensive new car early in your career. A $50,000 vehicle depreciates $10,000 the moment you drive it off the lot, plus you’re paying interest, insurance, registration, and fuel. That same money invested in your super or an index fund over 10 years could grow to $80,000 or more. Evaluate whether you even need a car, given your work and lifestyle circumstances, and consider a reliable used car instead.

Over-committing to property too soon

The pressure to “get into the market” leads many young professionals to stretch themselves dangerously thin. Borrowing at maximum capacity leaves no buffer for interest rate rises, repairs, or life changes. Being house-poor in your twenties means sacrificing experiences, career mobility, and investment diversification. Take time to build a solid deposit and ensure the property aligns with your lifestyle, not just FOMO.

Lifestyle creep with every pay rise

Each promotion brings a bigger pay, but also a nicer apartment, better car, and overseas holidays. Before long, you’re earning double your starting salary but saving the same amount or less. Combat lifestyle creep by automatically increasing your super contributions and investments with each pay rise, locking in savings before you can spend them.

Following social media financial “gurus”

Instagram and TikTok are filled with self-proclaimed experts promoting day trading, crypto schemes, and property “secrets.” These influencers often earn more from course sales than their actual investment strategies. Real wealth-building is boring: consistent super contributions, diversified index funds, and patient compound growth. If someone’s selling a financial shortcut, they’re probably profiting from you, not with you.

Avoiding these traps won’t make you rich overnight, but it will set you years ahead of your peers.

Australia’s retirement landscape is changing. According to the Australian Bureau of Statistics, by 2032, there will be more Australians over 65 than under 18, marking a significant demographic shift. While we’ve built a world-class superannuation system worth over $4.1 trillion[1], many retirees still struggle with a crucial question: how do I turn my savings into confidence?

The gap between saving and spending

The Superannuation Guarantee is now 12%, meaning retirees who have recently left the workforce are wealthier than any previous generation, but the transition to retirement often brings anxiety rather than excitement. According to Challenger’s recent Retirement Happiness Index, two in five Australians aged over 60 rank running out of money as one of their top retirement concerns, second only to maintaining good physical health.

The confidence gap: Advised vs Unadvised

The difference professional financial advice makes is striking.

Unadvised Australians are twice as likely to be extremely or very worried about outliving their retirement savings compared to those who have sought advice, 35% versus 19%[2]. The research also shows that Australians with professional financial advice report higher happiness levels (73.9%) compared to those without (64.4%).

The benefits of advice extend beyond financial peace of mind:

• Mental wellbeing: 82% of advised Australians report good mental health, compared to 72% of those without advice.
• Knowledge confidence: 72% of advised retirees feel confident about their retirement financial knowledge, versus just 46% of the unadvised.

Pre-Retirees need support

Those approaching retirement face unique anxieties. Pre-retirees are significantly more worried about financial issues than current retirees:

• 46% worry about not having enough money to do what they want (compared to 34% of retirees)
• 44% fear running out of money in retirement (compared to 33% of retirees)

This is where financial advice proves most valuable, in navigating the critical transition from accumulation to drawing down their savings with confidence.

What retirees really want

The research is clear: Australians crave income certainty. With 78% aged over 60 saying they’d be happier with a guaranteed income for life. This isn’t just wishful thinking; it’s driving real behaviour. Recent CoreData research shows that product adoption has surged 150% since 2023.

Your Retirement, Your Confidence

Retirement should be a time of opportunity, not anxiety. While building wealth is important, converting that wealth into a reliable income and genuine confidence requires guidance and planning.

Professional financial advice isn’t just about managing money. It’s about creating the certainty and confidence you need to truly enjoy the retirement you’ve worked so hard to achieve.

We can help build a plan that turns your superannuation into the retirement lifestyle you envision, with the peace of mind that comes from knowing your money will last.

The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional.  We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.

[1] https://www.apra.gov.au/news-and-publications/apra-releases-superannuation-statistics-for-march-2025

[2] https://www.challenger.com.au/individual/Campaigns/Happiness-Index

You’re earning good money, but are you keeping it? Many Aussie tradies work hard for every dollar but fall into expensive traps that sabotage their financial future. Here are five mistakes that could be costing you thousands.

The “tax write-off” trap

Just because something is tax-deductible doesn’t make it a good deal. If you spend $10,000 on new tools or a fancy ute upgrade because “it’s a write-off,” you’re still out of pocket $6,500-$7,000 after tax. Smart tradies only buy what they genuinely need to earn more money, not just to reduce their tax bill. Your accountant can help you understand the real cost versus the benefit of business purchases.

Upgrading the ute every two years

A reliable work vehicle is essential, but constantly trading up to the latest model is wealth destruction. Between depreciation, loan interest, and higher insurance, you could be burning $15,000+ per year. A well-maintained ute can easily last 10 years. That money saved and invested in super or property could set you up for early retirement, especially important when your body might not hold up for a full working life.

Skipping Super because you’re a sole trader

When you’re an employee, super happens automatically. As a sole trader or subcontractor, you need to pay yourself super—but many don’t. Starting at 25 and contributing just $200 a week to super could mean an extra $500,000+ by retirement at age 65. Your body won’t be climbing ladders or lifting heavy materials forever. Super is your future income when physical work slows down or stops altogether.

No Income Protection insurance

One workplace injury or health issue could end your earning capacity overnight. Yet many tradies skip income protection insurance to save money. If you can’t work, how will you pay your mortgage, feed your family, or cover bills? This insurance is as essential as insuring your tools or ute, as your ability to earn an income is your most valuable asset.

Buy-Now-Pay-Later for Everything

After pay and Zip make it too easy to buy new boots, tools, or even groceries across multiple payments. Before you know it, you’ve got five or six BNPL debts running simultaneously, each taking a chunk from every pay. These add up fast and leave you scrambling when unexpected expenses hit, whether that’s needing to replace tools, car registration, or having a slow work month. If you can’t afford to buy it outright today, you probably can’t afford the repayments either.

The trades offer incredible earning potential, but only if you’re smart with your money. Avoid these traps and you’ll be set up for life, not just living pay to pay, despite a great income.

The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional.  We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.