Considering Private School: What to Know and How to Decide

Most parents agree that their child’s education is critical to their success in the future.  However, in certain parts of the country, parents have been dissatisfied with our public school system and turning towards private school. Parents have complained that the quality of the curriculum is either no longer sufficient or schools are inappropriately shaping their child’s societal values (e.g., banning books, anti-LGBTQ rhetoric, gender identity).  Additionally, parents now question whether board members have too much influence on determining the curriculum and certain topics should be even taught in school. 

If you have the financial resources, how would you evaluate private vs. public school options? In this blog post, we will review emerging private school trends, tuition and ancillary costs, and explore potential factors that may influence your decision.

Private School Costs and Enrollment Increase Despite Lack of Affordability

Private school tuition varies depending on the education level, the institution’s affiliation and by geography. According to the National Center for Education Statistics, across all private schools, the average tuition is ~$12,167 / year.  Beyond tuition, parents will likely incur other expenses such as technology, books & supplies, field trips, uniforms, athletics, and other miscellaneous fees which could add another $3,700 / year.  Assuming a 4% annual tuition inflation rate, the cumulative cost of sending a child to private school from K-12 could cost on average almost $275K per child!

Private catholic elementary and secondary schools are less expensive compared to the average cost.  However, the average annual cost for prestigious secondary schools (e.g., Andover and Phillip Exeter Academy) may range from $61,121 to $85,000 per year (3.8X to 5.2X the average cost).  This equates to paying for undergraduate tuition at an ivy-league or tier 1 institution!

Regionally, the following states have the highest average annual tuition across both private elementary and secondary schools:

• Connecticut ($28,277)
• Massachusetts ($24,744)
• Vermont ($23,232)
• Maine ($22,584)
• New Hampshire ($20,584)
• New York ($20,554)

Yet, despite being so expensive, K-12 private schools have increased enrollment by 19% following the pandemic according to The Washington Post’s analysis. This growth in enrollment suggests that ~14% of all K-12 students nationally attend a private school in 2021.

The main drivers for higher private school enrollment include the following:

• Parents’ preference to raise children aligned with their religion (e.g., Jewish or catholic)
• Public school system instruction is failing (e.g., ban books, anti-LGBTQ rhetoric, questionable school board)
• Impact of pandemic (e.g., more outdoor time, more masking indoors and highly vaccinated communities)
• Quality and consistent education (e.g., critical thinking, open dialogue vs. curriculum changes according to the whims of election cycles)

Cost Planning Is Complex and May Require Tough Decisions by Parents

Private school is a significant investment and most parents already struggle to save for college given exorbitant tuition increases!  Additionally, even for those that can afford private schools, parents will likely need to evaluate a series of complex cost planning decisions:

• Are there high quality public school options in my neighborhood (e.g., magnet schools)? Is it feasible for my family to move to a neighborhood with a good public school district?
• Should I consider both private elementary and secondary school or just one of the two?
• What financial aid do these private schools offer?
• Does my 529 plan cover these expenses?
• What if my child also requires a private tutor and how much additional cost will that require? (e.g., PSAT / SAT prep, AP courses)

The significantly more expensive cost of private schools will likely force parents to re-think their original budget. While I did not attend private school, I remember the financial investment my parents made to give me opportunities to experience life, discover my interests and enhance my development before applying to college:

• Music lessons (Piano, Violin)
• Art classes
• Athletics (Swimming, Karate, Judo)
• Secondary Language Instruction (e.g., Chinese)
• SHSAT (Specialized High School Admissions Test), PSAT and SAT test prep

I cannot imagine the added financial hardship private school would have added on top of these expenses!  Parents may likely have to re-assess their budgets, consider prioritizing educational experiences and evaluate what they can teach their kids themselves vs. spending on private education.  

Access to Good Public School Districts Matters

Traditionally, the popular narrative has been that children that attend private schools tend to perform better academically because of the following:

• Smaller class sizes for more personalized engagement between students and teachers
• More academic opportunities (E.g., AP courses, IB programs, diversity of second languages)
• Higher standardized test scores and entrance exams
• Access to better resources, equipment and facilities
• Greater extra-curricular activities (e.g., sports, art, music, clubs)

Depending on different academic criteria, both types of schooling can result in strong performance. However, 61% of undergraduate students at Tier 1 or Ivy League colleges come from public schools (see chart below):

These statistics present an interesting insight. Most families of ivy league students that have the wealth to afford private school still choose to send their kids to public school. This trend may be explained by them already living in neighborhoods with good school districts and high quality public schools. This is a primary strategy that most families utilize (not just for the rich) that is more cost-effective than paying for private school. Many of my peers have moved to the suburbs primarily for the better public school districts.

Throughout my entire childhood, we did not have the financial resources to afford private school. I was fortunate enough that there were public schools with magnet programs for the gifted and specialized math & science high schools available locally.  These schools offered a rigorous academic curriculum, a highly competitive environment, and diverse extra-curricular activities. Early on, my parents realized that the quality of my locally zoned public schools was inferior. Therefore, they invested their time and money to tutor me so that I could get accepted into these schools. While I did not fully appreciate their efforts then, I am truly grateful now.

My wife, on the other hand, had a different experience. Growing up in Chile, she attended a public elementary school, but then enrolled in private high school.  There were no special magnet programs or math & science public schools in her neighborhood. There were only two options: public or private schools.  Her public schools lacked the resources and academic curriculum rigor compared to private schools.  They did not have advanced placement (“AP”) courses, which is a key prerequisite for all major top tier US colleges. Public schools also did not offer secondary language instruction. Most families that live internationally want their children to learn English or other languages as they see this as a future career advantage. For these reasons, her family’s decision for private school was a simple one.

Family Experiences Have a Greater Impact on Academic Outcomes

A 2018 study by the University of Virginia analyzed academic outcomes (e.g., achievement tests, grades, level of motivation) of students that went to public vs. private schools through the ninth grade. This study offered a counter argument to the claim that students at private schools performed better academically than those that at public schools.  The researchers found that family household income and the experiences that families could provide were more predictive than the choice of public or private school. These results also highlight the importance of financial resource allocation and the impact it has on a child’s development. By investing in meaningful and unique experiences, parents can help a child distinguish themselves from other candidates when applying to college.

My takeaway is that access to high quality public schools and a family’s ability to provide unique enrichment experiences play a greater role on a child’s long-term success. This is more important than the choice of public or private school.

A few important questions I find myself evaluating with my wife include:

• How does our public school district compare vs. other nearby neighborhoods? What are the magnet schools and specialized high schools that are available?
• For specialized or magnet schools, what is the admissions criteria and are there curriculums still as competitive and extremely rigorous as I remembered when I attended these schools?
• Can my child receive an equal or better education by supplementing public school with ancillary private education?  (e.g., private tutor for SAT prep)
• What meaningful enrichment experiences do I want to provide for my child?
• Where is the most cost-effective location for providing these experiences?

While every parent’s decision will be unique and highly localized, each parent must decide how to best allocate their limited financial resources.

Pros of Private School

Most parents elect private school based on a more rigorous academic curriculum, personalized instruction, better resources and greater control.

• Smaller class sizes (e.g., more dedicated teacher/student attention)
• Enhanced resources and facilities
• Specialized programs (e.g., art, music, sports, languages)
• Higher academic standards (e.g., AP courses)
• Greater curriculum autonomy with parental input

Cons of Private School

Beyond cost, the primary cons of private school include mixed academic performance vs. quality public schools, limited diversity and risk of elitism.

• Extremely expensive and may severely limit your path to FI
• No guarantees of getting into a premier academic university
• Limited diversity of student population vs. public schools
• Selective admissions criteria
• Risk of potential “elitism”

Please note that these pros and cons may not apply for all private schools and the key decision driver is usually the quality of public schools in each family’s local neighborhood.

Final Thoughts

Despite higher recent private school enrollment trends, the data continues to remain mixed.  UVA’s study demonstrates that when controlling for family income, there are no significant academic differences between public or private school students.  However, the greater predictor of success is the family’s approach to financial resource allocation to provide unique enrichment experiences.  Additionally, the availability of high quality public schools is another key factor influencing the private school decision.   

Sending your child to private school before college is an extremely expensive investment that could cripple your retirement plans before even paying for college.  Understand the full scope of your education options, focus on the experiences you want your child to have and develop a financially cost-effective plan without compromising on a high quality education.