Need advice on best way to save for school fees

chwaer

Hi, I have realised that I would like to give my daughters the best options for their education. I realise that this might mean paying for school fees. What advice would you give for this problem. My daughters are 2yrs old and 11months.

Rafter

Good idea to start saving now!

Don't get 'conned' into special school fee schemes where the fees are likely to more than offset any benefit.

Try to save regularly and tax efficiently using your ISA allowances.

Where to invest will depend on your attitude to risk.

The compounding effect of share based investment returns is very compelling, but higher risk than cash based isas, conventional savings accounts or tax free savings certificates from National Savings.

As a very rough calculation, if you want to generate £10,000 at todays prices for each of them per year from age 11-18 and can earn 5% return on savings and inflation is 3%, you need to be saving around £800 every month.

I'd suggest you find a good independent financial advisor who can take you through the options in more detail.

Good luck.

R.