Surrey Homes | SH60 | October 2019 | Kitchen & Bathroom supplement inside
The lifestyle magazine for Surrey - Inspirational Interiors, Fabulous Fashion, Delicious Dishes
The lifestyle magazine for Surrey - Inspirational Interiors, Fabulous Fashion, Delicious Dishes
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Education<br />
Forward Thinking<br />
Simon Wong, Chartered Financial Planner at JM Finn, explains<br />
how to plan for your child’s private school education<br />
Are there any ways to cut the cost of a private school<br />
education? Any aspiring parent wishing to send their<br />
children to private school will be fully aware of the huge<br />
cost to do so, with the average annual cost of a private day<br />
school at around £14,000 rising to £34,000 for boarding<br />
(Independent Schools Council). There are limited ways to<br />
actually reduce the cost but it is always worth exploring with<br />
the school if there are any relevant bursaries or scholarships<br />
available, which can range from 5-50% discounts depending<br />
on the school, so it can be worth nurturing that musical or<br />
sporting talent. Secondly, many schools offer a discount for<br />
paying all the fees up front. This only works if you have the<br />
capital available but sometimes the discount is not attractive<br />
enough to make it worthwhile and you may be better off<br />
investing the money elsewhere. Alternatively, retrain as a<br />
teacher and seek employment at a private school. The only<br />
way to really reduce the cost of educating your children is<br />
to plan for it and to ensure you<br />
are as tax efficient as possible.<br />
How far in advance should you be<br />
planning financially for your child’s educational needs?<br />
As ever, the sooner you start planning the better. I would<br />
always recommend a young couple to start saving for<br />
school fees if they are planning to have children, as the<br />
sooner you start saving the more benefit you achieve from<br />
compounding your returns. I also regularly have conversations<br />
with grandparents regarding their estate planning and<br />
more often than not, there is a desire to help with private<br />
school fee funding. This can be an extremely tax efficient<br />
way to cover the costs either by making a gift or setting<br />
up a trust, most likely a Bare Trust. These options can, if<br />
correctly structured, reduce the inheritance tax burden, but<br />
all require forward planning and above all, expert advice. <br />
145 surrey-homes.co.uk
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