Private School Calculator

When reviewing private school vs public school options, know the math.  Conservatively, the current cost of private school for one year, for one child is $20,000 (in post tax dollars).  If you are in a 30% tax bracket, that means you need to make approximately $28,571 in order to pay that $20,000 in tuition.

Here’s where the numbers get interesting… presuming you are sending your child to private school for 13yrs (K-12), and that private school tuition will increase 3% a year, by the end of the 13th year you will have paid $446,223 in tuition (this doesn’t include money donated to special funds or fundraising events, btw).  If you have two kids, that number is $892,445.  Three kids?  Forget about it.

If you took the same amount of money that you would have spent sending two children to private school for 13yrs and instead invested it at a conservative rate of return of 5%, you would have $1,143,595 at the end… For your retirement?  For their university education?

For more information on the average expenses of sending your child to college, see this link from CNN:  http://money.cnn.com/2011/10/26/pf/college/college_tuition_cost/index.htm

 

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