This document provides tips and guidance for saving and planning for education costs, including private school and university tuition. It notes that private school fees have risen 4.5% annually while university tuition is between £6,300-9,000 per year. To afford these costs, the document recommends starting a savings plan early when children are young and investing a regular amount each month. For example, investing £170 per month for 18 years could yield £60,000 before taxes. It also discusses using trusts and gifts from relatives to build savings tax-efficiently. Working with a financial advisor can help choose the best savings options and plans to achieve education funding goals.

1. Lifestyle Guide: Top Tips
for Education Funding
for Your Children
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How to create the
right savings plan for
your children’s private
education and university

2. www.capital.co.uk
We all want the best
for our children, but
can we really afford
it today? As budgets
are cut and belts are
tightened, you need
an intelligent and
robust education
saving plan if you
want to send your
children to private
school or see them
through university.

3. 4.5%
With private school fees rising by
4.5% in 2011, it’s hardly surprising
that they’ve seen the number of
British pupils drop since 2008.
The increasing cost of education
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4. 13%
In fact, according to Lloyds, the
total number of children in private
schools has fallen by 13% in the
last decade.
4.5%
With private school fees rising by
4.5% in 2011, it’s hardly surprising
that they’ve seen the number of
British pupils drop since 2008.
The increasing cost of education
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5. www.capital.co.uk
How much
will you
need to pay
for private
school?

6. If you’re saving for
private school fees, you’ll
need an average of:
£3,517
a term
for junior
school day
fees
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7. If you’re saving for
private school fees, you’ll
need an average of:
£3,517
a term
for junior
school day
fees
£4,124
a term
for senior
school day
fees
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8. If you’re saving for
private school fees, you’ll
need an average of:
£3,517
a term
for junior
school day
fees
£4,124
a term
for senior
school day
fees
£4,337
a term for
sixth form
day fees
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9. What about university?
The days of a free
university education
are long since gone, too.
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10. According to the Guardian’s
university tuition fees
table, this year you’ll need
anything from £6,300 a year
for bottom-ranking Bolton,
to £9,000 a year for top-
ranked Cambridge or Oxford.
£6,300 £9,000
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11. Starting a
savings plan
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12. www.capital.co.uk
The earlier you start an education saving
plan, the better. If your children are still in
nappies, you have about ten years until you
need to pay senior school fees, and 18 until
university.

13. To give you an
idea of how
much you can
save,
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14. if you invest £170 a month
for 18 years with an
annual return of 5%, you’ll
accumulate a reassuring
£60,000 before tax (make
sure both you and your
partner use your maximum
ISA entitlement).
£170
5%
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£60,000

15. And £200 a month invested
over ten years with an
average return of 6% will
grow to £33,500.
£200
6%
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£35,000

16. www.capital.co.uk
Specific types of Trusts
can be helpful in
building a tax efficient
nest egg to be used for
educational funding.

17. www.capital.co.uk
These can include
gifts from
grandparents and
parents, as well
as friends and
other relatives.

18. The right financial adviser can help you choose
savings plans that will accomplish your goals for
your children.
Get advice
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19. The right financial adviser can help you choose
savings plans that will accomplish your goals for
your children.
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If, like many people, you have a range of policies,
pensions and investments, a wealth manager
can also help you take control of these financial
products and work out what you have;

20. www.capital.co.uk
a great first step in finding out if you can
afford the education you plan for your children.

21. www.capital.co.uk
a great first step in finding out if you can
afford the education you plan for your children.
So, while private school fees and university
tuition may seem daunting, with the right
education saving plan, you can afford to invest
in a brighter future for your children.

22. Learn more about what
the right financial
adviser can do for you
and your family in our
free eGuide ‘What is
intelligent investing™?’
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