School Fees Planning

Find out more about funding your children's education, in line with your wider financial and life goals.

School fees can be expensive, and if you’re planning to put your children in private education followed by university, it’s likely to be one of your biggest spends.

SCHOOL FEES

Currently, the average fee for independent schools is over £18,000 per year. If it’s a boarding school you’re eyeing up, that figure is north of £40,000. From 1 January 2025 onwards, there will also be 20% VAT on private school fees and boarding, which will apply to pre-payments too.

If your child, or grandchild, is still very young, there are ways to plan for this large annual outgoing over many years by building up a school fees pot. Saving systematically in the preceding years can be a good approach and we can help you work out a sensible amount to save on a regular basis.

UNIVERSITY FINANCES

If your children also go on to university, then it is likely that they will still need financial support as, even if they apply for student loans, these are unlikely to be adequate.

Many of our clients have questions about whether they should apply for tuition fee loans and maintenance loans or pay for their children’s university education upfront.

There are pros and cons to both, and lots of variables to consider. We’ll help you decide the best course of action, based on your financial position and long-term goals, your children’s future earnings ability, and other behavioural factors, like instilling an appreciation of the cost of their education and perhaps helping motivate them to succeed in their studies.

EDUCATION COSTS: PLANNING OPPORTUNITIES

At Cooper Parry Wealth, we support our clients in preparing for education costs and help them make the most of the available planning opportunities.

We can help you find the best asset mix for your education pot, based on your risk tolerance, timeline and values and ensure it’s organised in a tax efficient way.

Some schools allow you to pay in advance and get a discount – and we can advise you on any specific offer made to you.

If the children have one or more grandparents, there are further opportunities to explore. Unlike parents, grandparents can gift money to their children tax-free by setting up a trust or a Family Investment Company (FIC). Both methods use the children’s tax allowance and can bring sizeable benefits. But, they can be complex, and obtaining proper financial advice from advisers experienced in this area, like the team at Cooper Parry Wealth, is recommended.

If you’d like to find out more about funding your children’s education, in line with your wider financial and life goals, don’t hesitate to get in touch.

WHAT OUR CLIENTS SAY

We recently sat down (in their wonderful new home) to chat with long-standing Wealth clients, David and Caroline. We covered loads of things, but perhaps most importantly we talked about what we did that made life really count to them.

“We have a great relationship with Cooper Parry Wealth, the team is always welcoming and so is the office! I would recommend them to any of my friends. Most importantly we reap the rewards of their advice every day and seeing our aspirations coming to fruition is amazing!”