Planning for a bright future
If you are worrying about whether you can afford school fees, then you’re starting at the right place! School fees are an incredibly daunting long-term commitment which could extend well into higher education.
School fees can be funded from a patchwork of sources, from income to savings, investments to borrowing, asking relatives for help to cutting back. All are appropriate and possible, depending on your lifestyle. Often, a benefit set up for one child is also continued for siblings. In our opinion, the important consideration is whether you can maintain the payments which will rise and include additional costs (uniform, trips, extra-curricular, transport etc). Once established, it is very difficult to stop paying and take your children out of school.
Of course, there are excellent state alternatives, and it is worth considering how the money that might have been spent on fees could benefit your child’s education in other ways.
Two other factors shouldn’t be overlooked:
- Do you have insurance in place to cover loss of income or ill health enabling you to continue to fund education?
- School fees are likely to increase in cost at a greater rate than inflation, so can this expense be sustained?
Finally. There is one sure-fire way of determining whether private education is feasible – get a financial plan. This will pull together all the strands and give you a clear insight into what is, or isn’t, possible.
At Holland Hahn & Wills, we believe that creating long-term cashflow forecasts that help you make the right financial decisions. A conversation with one of our financial planners could be the first step to a brighter future!
If you are a parent or a grandparent and want to know more about how our financial planning process can help you, or perhaps want a second opinion on the way your own wealth is managed please get in touch.
An initial chat is free, with no obligation and could save you a lot of worry
020 8943 9229
This article is for information purposes and should not be treated as advice. Individual circumstances should always be considered prior to purchasing any financial products. Investing involves risk – the value of investments and income from them may fall as well as rise and is not guaranteed.