School Fees Planning

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School Fees Planning

More and more parents are now keen to be able to provide funds to privately educate their family.

Saving for school fees

Few parents can afford to cover all the costs involved from income alone, thus more and more people are setting up savings plans to meet this expense.

With this in mind, school fee planning should be put in place well in advance of when it might be needed. The aim is to build up a capital sum to cover the cost of both primary and secondary education and ideally fees and living costs whilst at university.

There are numerous savings plans available and an IFA will tailor a plan to suit your personal circumstances and needs.

Fees can vary enormously depending upon the child's age, location of the school and whether the child is a day or boarding pupil. School fees also tend to increase on an annual basis. In addition to fees, you must also take into account all the hidden "extras" such as school trips, music lessons etc - add an additional 10% to cover these items.

Spreading the Costs

If for example you can afford to pay, say 60% of the school fees from income, but the additional 40% would prove to be a financial strain, it may be possible to implement a "draw-down plan" to spread the remaining 40% of the school fees over a period of 10, 15 or 20 years.

Lump Sum

If you have a lump sum that you can invest for future school fees there are a number of plans open to you. Long term investments falls into three main categories "cautious", "balanced" and "speculative". A professional fund manager or investment specialist will be able to advise you.