What Net Worth Is 'Enough' To Send Your Kids To Private School Without Sacrificing Retirement?

Private school tuition can be a major financial commitment — especially for families who also want to retire comfortably. But how much is "enough" to afford both? 

The answer depends on your income, expenses, and priorities, but experts and real families alike show that it's not just the ultra-wealthy who choose private education. Many do so while making sacrifices elsewhere.

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Private School Parents Aren't Always Wealthy

A common misconception is that private school families are all affluent. But as Financial Samurai blogger Sam Dogen writes, this isn't always the case. Some parents are making a conscious trade-off — prioritizing education over lifestyle upgrades.

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Dogen, who sends his child to a private Mandarin immersion school, observed that many fellow parents drive modest cars, live in smaller homes, and forgo luxuries in order to afford tuition. Some may even be putting their own financial goals, such as early retirement, on hold.

How Much Income Is "Enough"?

Dogen offers a personal rule of thumb: a family should earn at least seven times the net cost of tuition per child before enrolling them in private school. So if tuition is $20,000 per year after financial aid, that means earning at least $140,000 per child annually. He originally used a 5X multiple, but raised it to 7X due to inflation and changing economic conditions.

By this standard, two children in a $20,000-per-year school would require a household income of $280,000 to stay financially stable. That may seem high — and indeed, many families pay for private school on less — but it reflects the need to cover tuition, save for retirement, and still have room for unexpected expenses.

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The Retirement Trade-Off

Dogen highlights one San Francisco family earning a combined $230,000 — not top 1%, but well above the national average. Despite this income, they rent a modest two-bedroom condo, put two kids through private school, and still manage to contribute to their retirement and education savings plans. But there's a catch: with little leftover for investing in taxable accounts, early retirement is likely off the table.

Families like these may work into their 60s — not out of necessity, but by choice. For some, investing in their child's education now is more important than leaving the workforce early.

Financial Flexibility or Financial Strain?

Ultimately, the question of whether your net worth is "enough" comes down to how much flexibility you want in the future. Do you want to stop working early, buy a bigger home, or travel in retirement? If so, private school tuition may delay those goals unless your income significantly outpaces your expenses.

For families considering private education, it's important to look beyond the current year's tuition. The full K–12 cost can run hundreds of thousands of dollars per child. 

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According to the Education Data Initiative, the average annual cost of private school tuition for elementary and secondary schools in the U.S. is $12,790; however, top boarding schools can reach tuition expenses of $60,000 per year. If that expense comes at the cost of maxing out retirement savings or building a cushion for emergencies, the long-term financial impact could be significant.

Final Thoughts

Choosing private school doesn’t necessarily mean you’re wealthy — it often means you’re choosing to prioritize education over other financial goals. While there's no universal "right" income or net worth, using a framework like the 7X income rule can help clarify whether you're on solid ground. 

For families balancing tuition with retirement savings, the key is to run the numbers, understand the trade-offs, and align your spending with what matters most.

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