Private Education Savings

bunny_3

Dear All,

I'm looking to send my child to a private school. Can anyone recommend a good way to start saving ?

Many thanks.

grumbler

The best way is to open Halifax 10% Regular Savings Account (or accounts). After this you can relax for a while :coffee: and read articles in the 'SAVINGS' section . If you are a taxpayer the next step, I think, is to open ISA(s)...

ReportInvestor

How old is your child and at what age do you want him/her to start private education?

Do you have a lump sum to invest or are you starting from scratch?

Can grandparents help out?

bunny_3

Thank you for your response.

My child is 20 months and I do not have any savings put aside as yet.
Grandparents will not be involved with fees.

Many thanks.

ReportInvestor

Hi again, bunny.

From your very recent PM it would seem that you have only one year before your child starts, so it will have to be "pay as you go".

Unless you earn pots & pots of gold as a couple, prepare to tighten your belts for the next 20 years .

In this case I would suggest that you just pick the best interest rate account going.

In the short term
I think you've missed the boat for 1 year fixed rate bonds as these have fallen by 0.5% in the last couple of weeks to no more than 4.6%, so I'd take my chances in the short term variable rate savings market where you can still get over 5%.

But, as grumbler rightly suggests, I'd start by sticking £100 pm into that 10% fixed rate children's account at the Halifax, which is looking better and better. BOTH PARENTS can open one of these, AND ANY OTHER RELATIVES YOU CAN ROPE IN. Halifax is doing it to attract adult custom on other products, but why not take advantage of their scheming plans in true Martin / MSE fashion ?

In the long term, my advice would be to budget for school fees rising at least 6% pa against an inflation rate of 2.5% .

P.S. As a fellow parent, I think education is one of the best long term investments you can ever make . I know very few who have ever regretted it, in spite of the hardships. This is a life enhancing gift.

In the medium term
P.P.S. Be aware that fees rise at each stage - e.g. 3,5,7,11 or 13. So in theory you do need to be saving a bit more than you are paying out in the early years, unless your income is also due to rise sharply. Any extra money could be earmarked for a particular year. E.g. savings for senior school at 11/13 starting now could be legitimately invested in the stock market in a regular savings vehicle (to reduce some of the inevitable risk) over the next 2-3 years [Then stop - so that ALL the money has a chance to grow for five years.] My own choice would be a UK equity income fund.

P.P.S. I make it an absolute condition of paying my own childrens' fees that they will keep me into my old age : :rotfl: .

Rikki

I put money into bonds and high interest savings accounts for my childrens education. I have paid the fees for as long as possible without touching the savings.(not easy)
The most expensive years are 13-18. this is what the money is to cover. Please bear in mind school fees are rising in the region of 8% a year. My eldest sons fees have increased by £1,500 a term in 3 years. (13-16)