Our little one turned two this weekend. TWO. I was an emotional mess, a cross between very happy that I had a sweet, healthy, happy two year old and very sad that my baby is no longer a baby. I kept envisioning him heading off to university which would results in pools of tears welling up in my eyes. Drama queen? Just a tad.

The kid’s birthday celebrations were low key, not too much different than any other Saturday. He wore a birthday pin and we let him choose what to eat all day: bagels for breakfast, pasta for dinner, and berry cheesecake for dessert. We’d also break out into song, singing “Happy Birthday” at the top of our lungs, on demand; we sounded like a broken record because he requested we sing it over and over again. That made him feel special, differentiating his birthday from any other day. We gifted him with a tricycle we purchased used a few weeks ago; he squealed with delight at the sight of the trike.

Private School Recommended for my Toddler

Gardening was also on the birthday itinerary and we stopped by the local nursery to pick up some seeds and tools. While I was deciding between types of tomato seedlings, a lady started chatting with Daniel about the advantages of private school. I caught the tail end of the conversation, the former teacher recommended we put our two year old in private pre-school and stated that if we wanted our child to be brilliant, he should attend elite private school such as Upper Canada College or Hagerval College, where she attended. She didn’t “believe in the public school system” and insinuated that private school was necessary for a proper education. “It’s $30,000 [annually] for a good education” she said.

Okay, so everyone is entitled to their own opinion, but lady, are you friggin kidding me?! What annoyed me was that the lady implied enrolling in private school was the best thing parent could do for the child without considering that the average family in Toronto can’t possibly afford to do so. $30K isn’t chump change.

I’m not going to debate the merits of private school or the brilliance of private-school educated children; I just want to take a look at the financial implications of having to pay for private school.

Cost of Private School

Here is a list of private schools in Toronto and their respective annual tuition costs as of May 2014. Keep in mind, these costs do not include the admission fee, cost of uniforms, field trips, books or supplies.

[table]School, Tuition
St. Clement’s School, $26 675
Toronto French School, $29 300*
Upper Canada College, $32 950*
Royal St. George’s College, $29 100
Hagerval College, $28 600
The Bishop Strachan School, $29 470
Crescent School, $29 950
Average, $29 435[/table]
* This fee is specific to high school students only

The Cost to the Average Family

According to the census taken in 2011, the average gross income for families with children (under 18 years of age) was $114,000. Less income tax, the take home pay is closer to $80K. Assuming the average household has two kids, tuition alone will eat up more than 70% of the budget. Is that really financially feasible?

The Cost to Our Family

Our current gross income totals approximately $150,000 (give or take 10%- we’re not ready to reveal such information). For simplicity sake and to get nice round numbers, let’s assume our annual take home is $100,000. We want two kids. To put two kids in private school, it would cost us approximately $58,870 a year in tuition costs alone. This would result in the lionshare of our budget allocated towards tuition, leaving approximately 40% to cover the cost of living. Cutting all unnecessary expenses and living off the bare minimum (tithe, mortgage, groceries, transportation expenditures, internet and phone bills), we could make due with living on 40% of our net income, but that would leave us with little to no savings whatsoever. For us, the costs of private school would be a burden. It’s not only foregoing certain luxuries, like travel, but after paying for tuition, we would be scrapping by.

Let’s also assume that we also pay for post secondary education further down the road- I mean, if we’re paying for private school, why wouldn’t we also pay for college/university? If that were the case, we wouldn’t be clear of this $60K/year cost until we’re well into our fifties. That would give us only ten to fifteen years to focus on retirement savings with the intent of retiring at 65 years old. No thank you.

Putting my existing child and hypothetical one in one of the aforementioned private schools would most likely mean they’ll receive the best education offered in Canada, but would it be the best thing I can offer? Just getting by financially would result in additional stress and anxiety, possibly taking on additional work to supplement income and thereby taking time away from my children, foregoing my own financial independence, and the ability to help out my children financially in the future if I so desire.

The Last Word

I’m sure private schools provide an excellent quality of education, but even with that in consideration, are private schools best for children and their families when you account for the costs? For people who can truly afford it and want their children in private school, by all means, go for it, but for the average household, it would mean working to pay for school and thereby jeopardizing savings and a standard of living.

The lady at the gardening center was shortsighted for thinking that a good education at a cost of $30k a year is the best thing that parents can provide for their children. The fact of the matter is private school has huge financial implications on an average family. The costs of tuition can severely handicap financial stability. Maybe it’ll produce brilliant children, but be wary of the consequences.

My little one will continue to attend his non-privatized daycare and, in a few years, attend a public school. I guess I’ll risk his brilliance.

Are private school tuition costs worth it at the expense of future financial stability?