Parents need over £200k to send kids to private school
A recent report has highlighted that, for the average child starting private day school at five and finishing A-levels at 18, parents are looking at forking out a total of £204,609.
This increases to almost half a million pounds -£479,269- for children who board throughout their private school education.
Bridgit Richards, head of marketing at financial advisers Wesleyan, said: “Our professional customers often aspire to send their children to a private school. It is a big financial commitment, which can be made more affordable if parents start saving early.”
Parents are being advised to financially plan early on in a child’s life.
According to Wesleyen, the burden of school fees can be eased by making plans to save regular amounts each month from their child’s birth. The interest earned on regular long term savings can make a significant contribution to costs.
If on the birth of their child, parents started saving £10,923 per year – just under £1,000 per month – in a savings account paying interest at 3% per annum, they would build up enough money to cover the cost of day school private education. The interest accumulated over the 18 years would pay for almost two years’ fees.
Richards added: “Simple things like utilising the full ISA allocations for both parents could have a real financial benefit over your child’s time at school.
“Equally, other longer term savings products such as a Flexible Savings Plan, which invests in stock market funds but allows you to withdraw the money when you need it, might also be appropriate. As with any major financial decision, it’s important to take specialist financial advice and understand all your options before making a choice.”
Parents who want their child to board need to start saving £24,129 a year, or just over £2,000 per month. Based on 3% per annum interest they would earn £44,946 on their money to help with the costs of school fees.