An interview with
Chris Procter
Chris Procter and his team at Amber River SFIA (formerly SFIA Wealth Management) have been advising individuals and families for over 25 years,. They joined the Amber River Group in March 2023. Amber River SFIA provides independent financial planning and advice, helping to protect and enhance their clients’ financial wellbeing. They also specialise in school fees planning.
In this article, Chris shares his extensive experience on how parents can manage the expenses of private education without straining the household budget.
Choosing to send your children to private school is often more of an emotional decision than a financial one.
You want the very best for your child, believing that a private education will give them the best start and is the right decision for them. However, what starts as an emotional decision can quickly become a financial burden.
The right financial planner will help you manage this cost to try and maintain your standard of living for you and your family.
The average fee for independent schools is £16,656 per child per year, increasing to £36,000 for boarders.
The rising costs of educating your children privately
Before you decide to send your children to a private school, you must fully understand the cost implications for your family. This commitment will likely span the next 15 years or until your child turns 18.
You need to consider that if financial circumstances change, your child might have to switch schools, moving away from friends at a critical time in their education.
According to the Independent Schools Council Census 2023, the average fee for independent schools is £16,656 per child per year, increasing to £36,000 for boarders. Then there are the inevitable extras such as uniforms, trips, and equipment, which can be a significant additional cost on top of the annual fee.
Typically, school fees rise with average earnings rather than at lower inflationary rates. And now, there’s also the likelihood of the introduction of VAT on school fees, meaning the cost of sending your child to a fee-paying school will soon be even higher.
For more on the VAT rise, see: How can I prepare for VAT on school fees?
And if sending one child is possible, what happens if you plan on having more children? Can you realistically afford to support two, three or even four children through private education?
Think carefully before you commit
Before you let your emotions lead over financial reality, consider Chris’ advice:
– Recognise that this is a long-term commitment
Just as a dog is for life, not just for Christmas, the same applies to sending your child to private school. You need to acknowledge the long-term financial impact of this decision.
If you have any concerns about the long-term costs and your ability to pay, it’s crucial to consult with a financial planner who specialises in school fees. They’ll create a cashflow forecasting model to show you precisely what you’ll be paying over the duration of your children’s education and how this fits with your family finances.
– Start planning early
While making this decision early on allows you to plan your funding better, it’s not crucial to being able to afford to send your child to private school. However, starting early does give you ample time, potentially up to ten years, to build up the necessary funds before their first day at private school. Early planning allows you to take advantage of compound interest on savings and investments, making it easier to meet the financial demands without straining your budget later on.
– Consider factors that could impact your ability to pay
Like any financial commitment, unexpected events such as job loss, illness, divorce or even death can affect your finances. It’s important to consider how you would maintain your child’s education if one or more of these significant changes were to happen. What plans do you have in place?
– Protecting your investment
If your children’s education is a central part of your financial plan, you need to secure this investment with appropriate insurance policies. Critical illness cover, life insurance, and income protection should be designed to cover school fee costs in case something happens to you or your partner. These might be an added financial burden, but if you can’t afford them alongside the fees, you may need to reassess your long-term ability to commit to private education.
– Build a long-term financial plan
The next step is implementing a holistic, long-term financial plan that considers all aspects of your financial security, including retirement, monthly cashflow, protection, tax planning, investments, and savings. A financial planner will help you structure your financial plan around the school fees, ensuring you can commit long-term while securing your overall financial future. This may include approaching grandparents for help, perhaps by placing money into a trust specifically for school fees.
– Financial housekeeping
Take control of your financial outgoings and look for small savings that could make a significant difference. Leverage employee benefits, such as life insurance, which many companies offer. If your family is single-income, even part-time work by the non-earning partner could add several thousand a year to the school fees fund. Remember, high earners may bring in a lot, but after taxes, mortgage payments, holidays, monthly household expenses, protection, and school fees, that income can quickly be depleted.
Amber River financial school fees planning
If your children are already in private school and you’re worried about rising fees, or if you’re considering private education, talk to a financial planner. With the right advice and a robust plan, you can manage the financial commitment effectively, giving you peace of mind about your children’s educational future.
Get in touch
To arrange a meeting with Chris or one of his team, or to set an initial appointment with an Amber River financial planner in your area, call us on 0800 915 0000, or alternatively use our contact form here.
Disclaimer
The information within this article was correct at the time of publishing, but laws and tax rules are subject to change. Your circumstances and where you live in the UK may also have an impact on your tax treatment.
To learn about the government’s most recently-announced changes, please read our latest budget roundup: 2024 Autumn Budget Update
