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“Education is the best provision for old age”
Aristotle (384BC – 322BC)
Aristotle’s maxim is an ancient truth that is as relevant today as it was for the children of ancient Greece, yet to open the newspaper or switch on the television is to see UK education seemingly in crisis. Yet proper structured planning can alleviate the impact of school fees on family finances. There are a number of investment strategies available which can be employed to maximise tax advantages and smooth costs.
“Education is the best provision for old age”
Aristotle (384BC – 322BC)
Aristotle’s maxim is an ancient truth that is as relevant today as it was for the children of ancient Greece, yet to open the newspaper or switch on the television is to see UK education seemingly in crisis. Yet proper structured planning can alleviate the impact of school fees on family finances. There are a number of investment strategies available which can be employed to maximise tax advantages and smooth costs.
Frequent headlines of bullying, knife incidents and teacher assault paint a worrying picture of state education. At university, the introduction of tuition top up fees means that This year's freshers are expecting to spend £33,512 over the course of a three-year university degree and leave with a debt of £14,779 (Source: Guardian, August 2006) - a daunting prospect for a young person considering the first rung of the property ladder. Add to this the results of the 2007 UNICEF survey “An overview of child well being in rich countries (2007)”, where the UK placed bottom of 21 countries, and it is easy to reach a gloomy conclusion.
Where there are good schools the competition for places is fierce. The Royal Institute of Chartered Surveyors state that “A good school can cause mayhem in a local property market. Buyers with children of school age will do anything to get their children a place.” And that “some people are simply being priced out of the market in key locations” (source: RICS, November 2006). Against this backdrop it is easy to understand why more and more parents are looking to the independent sector to educate their children.
There are 2,500 independent schools in the UK who are responsible for educating more than 7% of England’s schoolchildren. In the sixth form as many as 23% of A-level students attend independent schools where c.93% go on to higher education and one in four achieve three or more A grades at A-level (Source: The Independent Schools Council annual census, January 2007).
With average school fees of £3,391 per term at secondary school, it is clear that opting out of the state system is not without financial implications. Education costs can eclipse housing as the most expensive item in a family budget.
Yet proper structured planning can alleviate the impact of school fees on family finances. There are a number of investment strategies available which can be employed to maximise tax advantages and smooth costs. These can be easily catered to individual circumstances such as the number and ages of children, your aspirations for their education and the timing and amount of fees due. Plans may be devised that take account of regular as well as lump sum savings and even immediate school fees liabilities.
At PFP we can help parents, grandparents and extended family members make the most of the opportunities available to their loved ones and, as Aristotle postulated, provide them with the best possible advantage in life.
