Planning for independent education

When do you start investing in your child’s future?

For many parents, an independent education for their children is a top priority when they’re planning for their future. It’s about much more than academic success: independent schools can offer a wide range of personal and social opportunities that are invaluable throughout a child’s life.

Pupils are encouraged to try different sports, enjoy enriching experiences and make social connections that often last well beyond the classroom. And with smaller class sizes, access to top class facilities and nurturing pastoral care, it’s no wonder many of us opt for independent schooling.

Reaching your family goals

At Attivo, our Lifestyle Financial Planners are fully invested in your family goals and personal ambitions. Everything we do is focused on helping you and your family live the life you want, the way you want. Planning ahead to  fund private education efficiently is a key part of this.

We work with clients holistically: protecting long-term goals such as buying another home, along with the lifestyle you imagine for yourself when you stop working. Importantly, we’ll support you in achieving what you want for your family in the shorter term too.

The cost of an independent education

The average cost of private schooling from primary till the end of sixth form is £157,614. For boarding, this figure goes up to £336,876.¹ Of course, there are additional costs on top of this, from uniform and sports kit to musical instruments and travel.

Choosing private education, and fitting this in with your other lifestyle goals, is something your Financial Planner can help you with, giving you the early confidence that everything can be well covered from the first term of pre-school to the last day of sixth form, or even university.

When should the planning begin?

As with most things you want in life, the earlier you start, the better. Opening a Stocks and Shares ISA or investing monies well before your children start school are both useful ways to put money aside. This way, you’ll get a head start, with four- or five-years’ growth through compound interest. Mortgaging or offsetting a mortgage is another way of sourcing funds.

Help from elsewhere in the family

Grandparents can gift money to grandchildren and are often very happy to help with their education. It’s a smart way of minimising Inheritance Tax the family might otherwise have to pay.

Trusts are a tax-efficient way to do this. Setting up a trust, with the grandparents as trustees and the children as beneficiaries, means that you can take advantage of the Children’s Tax Allowance. Trusts can be complex to arrange, but we have specialist advisers who can explain the workings of a trust and help with its set up.

Protecting their future, from first day to finals

Protecting your investments is always wise; but when you’re investing in the people you care about most, it’s even more important. Of course, we can’t predict the future, but we can plan for the unexpected such as illness, or worst of all, one of you dies.

Having the right life and medical insurance, whether you’re employed or self-employed ,  can help to ensure that your children’s education can continue, even in times of uncertainty.

Getting off to the best possible start

A private school education is a significant financial commitment, so it’s important to get advice from a professional who understands your personal goals and lifestyle. Attivo is on hand to guide and help you plan efficiently, to enable you to give your children the best possible start in life.

 

¹ ISC CENSUS AND ANNUAL REPORT 2022Pg. 17. Link: https://www.isc.co.uk/media/8387/isc_census_2022_final.pdf 

*The value of your investment can go down as well as up. You could get back less than you invested.