School Fee Investment Plans
This page is for any parents or family interested in finding out more about educational investment plans for their children, as well as an overview of school fees in general (UK private/independent schools).
Overview of school fees
As you may know, putting your kids through private school in the UK can be incredibly costly. The fact that government-financed schools (state schools) are free to all children in the UK from ages 5-16 also puts off a lot of parents considering private school.
As of 2017, some estimates put annual fees for prestigious private boarding schools at as much as £30,000 per year, while regular non-board independent schools can range from £5,000 – £10,000, depending on the quality of the school.
Methods of help with private school fees
While the costs of private school fees may seem daunting, there are plenty of ways parents can get help in financing children’s education. Help in the form of scholarships, bursaries, grants and charitable donations are all available.
These methods of help won’t allow your child to go to private school for free, but they do certainly help lessen the financial burden.
School fees investment plan
Something else that all parents should consider regarding private schools in the UK is taking up a school fees investment plan.
These plans can be tailor-made to suit each family’s needs, but they all have one overriding purpose: to help parents and guardians save money for their child’s education – be it in the near or long-term future.
Regarding school fee investment plans, there are three main types, which are as follows:
1. Capital Schemes
These involve investing one lump sum of cash in an investment fund. Just like any fund, the returns will depend on a number of factors such as the initial interest rate, the projected interest rate, how long the lump sum will incur interest (i.e. when did you start the investment) and the performance of domestic and international markets. It is worth noting that some capital schemes may have a guarantee that you will at least get your initial investment back should things go wrong. However, it is always vital you check with a professional financial advisor beforehand.
2. Income or regular savings schemes
Rather than putting down a lump sum upfront, income saving schemes involve placing monthly, bi-monthly, quarterly or even annual payments into a fund. Again, the factors mentioned above will normally determine how successful these kinds of investment plans are – but the most important factor (normally) that influences how much return you get will be the time in which you start the fund (i.e. the earlier you take out the school fee investment fund, the higher it will be by the time you need to pay for your child’s education).
3. Combined schemes
Simply a combination of (1) and (2) above, combined investment plans are flexible in allowing you to make an initial lump sum payment followed by additional payments set at intervals as per the conditions of the scheme.