UK School Fees
When it comes to your kids, you only want the best. Getting a great education is at the top of most parents’ lists, which may involve choosing to send your children to a private school. When setting your financial goals, it’s good to know how much is private school, and how can you prepare for these costs.
According to a report by the Independent Schools Council (ISC), the average annual cost of a day student at a UK private school is around £15,000¹, with fees rising annually. Location plays a major role in how much a private education will set you back, with private school fees in London being one of the most expensive.
We want to help you understand what you need to pay and when, as well as how you can structure your financial goals. In this article, we’ve outlined a few simple ways you can organise your finances to make private school fees affordable in your life plan.
Comparing the costs (average per term)
Average weighted fees per term sourced from the ISC Census 2020².
There’s no denying it, private school fees are expensive. In fact, deciding to send your children to a private school may cost more than buying a house. One of the best ways to prepare for the cost is to plan ahead wherever possible.
If starting a family is on the cards, thinking about building your savings sooner rather than later will ensure you can afford everything – from the actual fees to unexpected costs like uniforms, travel and music lessons. We can help you structure your monthly commitments to set aside dedicated savings, to give your children the best start possible.
Speaking of savings, one of the best ways to get a jumpstart on private school fees is make your money work harder. Max out your ISA savings allowance of £20,000 per tax year to build up savings fast and create a
pot of tax-free money you can
dip into. For example, if you
saved £1667.67 a month and
gained 5% annual interest, in
just over four years you’d have
£90,000, which can go a long
way to covering fees.
“Max out your ISA savings allowance of £20,000 per tax year to build up savings fast and create a pot of tax-free money you can dip into”
We can make things easier by automatically calculating the cost of education for all age groups, by both region and school type, and determining exactly how you can plan your finances to achieve this goal.
The pandemic has led to many private schools offering fee discounts and rebates on costs such as meals and transport
If you’ve been saving, it’s possible you’ve built up enough to consider paying fees upfront. Some private schools offer ‘advance funding’, allowing you to pay in advance for your child’s education. Occasionally, schools may offer a discount for paying early.
Not only does this reduce your monthly commitments, but it’s a clever way of avoiding inflation rises on fees. Private school fees have risen faster than inflation every year for almost a decade. Though the pandemic has led to many private schools offering fee discounts and rebates on costs such as meals and transport, it’s safe to assume they’ll soon be on the rise.
PICK YOUR TIMING
If sending your child to a private school immediately doesn’t fit your life plan, consider delaying private education until they’re older. Some families opt to go ‘state until 8’, that is, sending their kids to a state primary until they’re 8 years old, then switching to a private education.
Giving yourself extra time to save during your child’s first few years of school will not only help you accumulate savings, but it can shave a third off the cost of private schooling over the course of your child’s education.
At Peach, we can help you afford the costs of private school fees by analysing your monthly commitments and creating smart, personalised plans that can help you build the future you want. You keep on living; we’ll take care of the little things.