Education Fee Planning

Working Together to create a Financial Plan to pay school fees in the Future
What is education fee planning? Being able to pay for your children to have the right education has probably never been more important due to the current situation with schooling in the UK. When it comes to considering your options and their costs we can help. School fees will generally span 14-15 years and is a huge financial commitment to take on.

Did you know: 80% of parents pay their school fees from income? 
Typical costs for preparatory school (private primary school) 5 – 11 years: Duration of 7 years with a typical cost of £77,000.

Secondary school 11 – 18 years: Duration of 7 years with a typical cost of £125,000. And this is solely for the education it doesn’t stop there… University 18 – 21 years: Duration of 3 years with a typical cost of £40,000 These prices are based on todays costs (year 2017) but they tend to rise above earnings and inflation.

Are you interested in exploring other options?
There are four main facilities when it comes to providing for your children’s school fees and they are broken down as follows.

Supplementing fees from income
Not the ideal situation but as you will see from the quote above it is the most common. Supplementing fees from unearned income from your investment portfolio would understandably be the most suitable when comparing it to using your earned income. This method will rely on surplus income being sufficient for the duration of your child’s/children’s education

Lump sum investment:
Investing a lump sum with the objective of producing an income to cover school fees in their entirety or as fully as possible with the said amount.

Regular contribution investment:
Making smaller contributions over a period to build up an appropriate amount in order to pay tuition fees. This would ideally start as early as possible and is quite often commenced even before your child is born.

Immediate funding:
This option is normally when borrowing is used to fund the school fees and is not ideal. The nature of this method will put your family under pressure due to the likely charges of interest on the loan advance that will vary over time as well as varying costs.

Who would benefit from Education fee Planning?
If you are considering private school education for your child/children speak to us regarding our service proposition and how running a financial plan for the family as a whole can help with school fee planning in a cost effective way – be mindful that well over £200,000 could be spent on one child’s education from Reception to age 18 and then there is University afterwards.

What we offer
A customised investment based solution based on your current and longer term situation that will help you feel comfortable with such a significant and relatively long term financial commitment.

Why Choose us?
We are independent financial advisers with a wealth of experience in this area of financial planning. We pride ourselves on working with our clients to provide individually optimised financial solutions to education fee planning needs.

What to do now
Contact us on 01992 503410 to arrange a meeting in order to discuss this aspect of your financial planning and identify which strategy or combination of strategies are most suited to your needs.

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To arrange a consultation or speak to an adviser, please fill in the web form or contact us on our office details below.

We look forward to hearing from you.

Ben Whatnall

Independent Financial Adviser

Find out more about our founder and principal adviser Benjamin Whatnall with over 12 years experience as an adviser.