How important is education to
you?
There are few things more important in life than a good education. However,
providing a child with an independent or further education can be costly,
especially if financial support cannot be obtained. Planning for these costs is
essential and a significant commitment, but by planning you will be better
placed to give your children the education they deserve.
Most people agree that tuition fees
are here to stay, so unless you want your offspring to start adult life with the
millstone of debt around their necks, it is sensible to allow for the
substantial costs of further education in future.
Once a child has been started in
the private system it is very difficult - and potentially damaging - to be
forced by financial necessity to remove them to a cheaper or free school. It
is vital, therefore, to ensure that adequate funds will be available to meet
the ongoing bills.
Save & Prosper, the UK fund management
group, released new estimates in a recent report. The report states: "The figure
of £200,000 is based on average day-school costs. If you plan for your child to
board at the school, then the figure would be considerably higher. It is
difficult to think as far ahead as education when you have a new-born baby, but
investing wisely from day one makes sense."
Unsurprisingly, the Independent Schools Information Service [Isis]
reckons that two thirds of parents paying education fees do so from
income. Richard Davison, a director of Isis, said: "Many parents feel
strongly that their children will benefit from a private school
education. However, this is an expensive option. With fees predicted to
rise by up to seven per cent per year, parents need to start planning as
early as possible.
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University Costs
In addition, there are the rising costs associated with sending a child to
university. The National Union of Students calculates that student living
expenses in London currently amount to more than £7,000 a year, while the total
is nearer £6,000 outside London. This is excluding the cost of the course
itself, which vary depending on the type and the University, but as an average
the fees are approximately £1,400 to £1,800 per year.
* The cost for International students
course is much more expensive between £8,000 and £10,000 per year
Take the strain
out of
school / University fees
For many, the decision to provide their children with an
independent or further education is a major one. The
financial implications can often be a matter of stress and
worry. We can help provide you with peace of mind and
protection against unforeseen circumstances, reducing the
risk to you as a parent and making the whole process much
easier. There are only really two ways that a parent can
financially plan for the School/University fees, by
investing lump sums or a regular savings plan to meet the
requirements.
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In all instances, we fully embrace the
need for tax efficiency and flexibility of approach when tailoring individual
arrangements. Portfolios and recommendations are specifically constructed to
take into account clients' attitude to investment risk.
Regular savings plan
Regular savings for school fees can help defray future costs and
should be started as soon as possible. It is wise to commence
school fees planning before your children are born. The longer
that you save, the less the impact there will be on income when
school fees fall due.
There are many plans available that
can be adjusted to individual needs and requirements and core lump sum
investments are only "earmarked" for school fees. This leaves individuals with
flexibility to use funds at their discretion.
Take advantage of discounts
Many schools operate discount schemes where it is possible to pay the school
a lump sum up to a year in advance of your child starting. These pre-arranged
fees often result in large discounts off the standard charge.
Therefore by planning ahead, and
starting to save early, you can build up a capital sum enabling you to take full
advantage of these schemes.
For further
information on these schemes please contact us by simply filling in our enquiry
form.saving
plan, regular saving, financial saving plan
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