The costs associated with private education and university tuition are not insignificant and often eat in to the savings potential of many parents who opt to pay for their children’s education at the expense of their own longer term savings. Grandparents often assist with educational funding as well.
As always the earlier you start the more potential that funds will be able to support children through their educational lives. The cost of putting a child through a 14 year private education has been calculated as £286,000 a report compiled in 2015 by Killik and Co found. This puts the average annual school fee at £13,194 in the UK.
Savings for education can be in the names of children, parents and grandparents the options are there but it’s all about planning ahead of time that offers the best results.
If private education is desired start saving asap with new borns.
Placing growth investments in the children’s name as non tax payers can be tax efficient
Investments made by grandparents can also be tax efficient.
Cash flow modelling can assist in projecting forward savings and indicating how much to set aside. It can also project future costs and escalate them to reflect the inflation on these types of fees.
Please email or call Alison (07496 689 309) or Adrian (07725 343 815) for a no obligation review of your circumstances.
Alison Davis and Adrian James are authorised and regulated through Mulberry Wealth Management Ltd. Mulberry Wealth Management Ltd is Authorised and Regulated by the Financial Conduct Authority (FCA). Our Financial Services Register number is 499351.