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School Fees

“ …it is our moral obligation to give every child the very best education possible…” Desmond Tutu

The provision of a good education for our children is of paramount importance to all parents and there are a number of questions that need to be answered. In what country will our children attend school? What school will they attend? Will they be day students or will they attend a boarding school? When will fees become payable and most importantly, how much will it all cost? Whilst the answer to these questions will enable ICHOR to provide specific planning advice, the simple truth is that Private education, regardless of country, does not come cheap.

For example the bill for seven years private secondary schooling in the UK can easily top £60,000 (US$90,000) per child and this bill increases significantly if your child attends a boarding school.

Private school fees have risen dramatically over the last few years and have historically increased at a rate in excess of inflation. According to the Independent Schools Council parents hoping to send their child to a private school in the UK can expect to pay on average £3,835 (US$ 5,967) per term whilst fees including student boarding are typically in the region of £9,204 (US$14,999) per term.

So in simple terms this would result in an annual ongoing fee of more than £11,500 (US$17,900) for day pupils or £27,600 (US$ 42,940) for boarders. Send more than one child to private school, add in flights home and the costs can soon spiral.
Education Fee Planning

For parents wishing to educate their children privately then the key to reducing these costs is to start saving early. The advantage of starting to invest regularly from the point when your child is born is that it gives you just over 10 years until they start secondary education.

By way of example, if we assume that you invest £200 per month and achieve an average return of 6%, your investment will grow to £33,500 over a decade. Increasing that monthly sum by just £50 up to £250 and you will have £42,000. This will go a long way towards covering the average school's fees and if you only withdraw money only when needed and continue saving once education starts then you may just have a child covered.

ICHOR Partners have a dedicated team of professionals who can assist you in:

• Establishing the cost of education for each child specific to their level of education and country of choice.

• Full understanding of all the factors involved with education planning

• Advise on the most tax efficient plan for you

• Assistance in selecting the appropriate school or college