The cost of School Fees have been on the increase for some time now, with the cost of private education rising by 7% per annum for the past three years. Currently the average cost of School fees is approximately GBP 10-12,000 per annum for Junior/Preparatory school, and GBP 14 - 16,000 per annum for Senior School (both on boarding terms). In addition to this you will also need to take into account the cost associated with a University education.
Full time education will account for between 15% - 20% of your childs life, and can be quite a financial drain if you plan on funding this out of your ordinary income. Taking into account inflation, the total cost of educating your child could be well over GBP 250,000 – How would you be able to fund this commitment out of ordinary earnings without planning ahead? Do you have any measures in place to fund the cost of full time eduction?
At Montpelier we can create a solution for you, tailored specifically to your current needs and requirements regardless of whether you have little or no current savings at the moment. We can put in place an arrangement whereby you can save sufficient funds to ensure that you will always be able to comfortably afford the cost of your childs education without a problem. For example in order to save GBP 100,000 to cover the first few years of your childs education, you would need to save GBP 925.00 per month for seven years, or invest a lump sum of GBP 25,000 combined with a regular saving of GBP 525 per month for seven years (both examples assume an annual growth rate of 7%). As earnings increase you can increase your savings accordingly to meet with the ongoing cost of Education and ensure that you give your child the best possible start in life.
Montpelier can create a highly tax efficient and cost effective solution that will be flexible enough to meet with your own specific requirements and fit in line with any other investments that you may have.
