100k to spend on DC's education but how?

[mustbeabetterwife]

First time post here, but a very long time lurker on the education board.

DH and I have some inheritance money (£100k) to spend specifically on our DC's education. The money has been given to us on the promise that it is only to be spent on their schooling.

DS1 is 3 and DS2 is 1 but I want to start thinking now about where and how the money will be allocated.

Bit of background:

DH earns a decent salary. He doesn't want me to be too specific, but let's say more than 60k and less than 100k.
I am a SAHM. Hope to return to work when boys are at school. Will earn no more than 30k.
We have 2bed house in South East and have no plans (or funds) to move.

DH was educated privately and I state. Both went to RG universities.

DH would like the boys to be privately educated but I'm less keen. However, with a reasonably hefty mortgage, there is absolutely no chance of us being able to afford the fees.

So, how do we spend the inheritance money as specified?

Option 1 - Put both boys into prep and then transfer to state (top up with tutoring).

Option 2 - I'm not really sure on this one. Secondary school fees are 15k a year so that would only fund one son through secondary school, there are no grammar schools where we live.

Option 3 - Both boys into state primary and secondary and private for sixth form. Fees 15kpa for private sixth form, so in total for both boys to go private for sixth form - 60k. Split the remaining 40k to fund their first year of university.

Option 4 - Stick money into a high interest account (if there is such one atm!) and then 50k for each boy to see them through university. No idea though how much the fees will be though in 15 years time!

I hope this post doesn't come across as boastful, it is not my intention in the slightest for it to do so. I know we are very lucky to have this money and just want it to be spent as it is so wished.

Thank you in advance.

[AmberTheCat]

How about using at least some of it to help your local school fund equipment or facilities that they wouldn't otherwise be able to afford? Then it would benefit both your children and others'.

[wordfactory]

OP, mine went to a fabulous prep.

It really did offer far more than any state primary could. Money very well spent.

However, since you really don't have enough to see you through, it might be better to at least start in state school.

You mention extra curriculars. I'd add that if either of your DC show an interest in the performing arts or sports at a high level, you are going to need to invest a hell of a lot of time, effort and money.

[mustbeabetterwife]

We always thought we would fund extra curricular ourselves, but there obviously would be of course a limit for us to fund excessively the hobby they fell in love with - f1 driving for example, could prove a bit costly...!

dh is leaning towards some preps, but I'm really not sure and don't know about single sex ed either. Tbh, I feel it makes sense for them to have local friends and be happy at our local primary school (not that it would have anything to do with me not wanting to spend half the morning and afternoon driving them to and from a prep!)

I am interested in comparing though them with our local primary as I don't have any experience of private education - the fees just baffle me!

[williamtell]

I also agree re: university fees, I wouldn't specifically save for those instead of say private secondary.

[lottie4576]

I completely agree with Theas18 and everyone who is saying dont invest it in uni your chil might bot want go to uni and if they went private earlier then they would get into a better uni

[Bonsoir]

I wouldn't rely on university costs/loans being the same in 15 years time as they are today. Remember, the introduction of loans now has to be accessible because parents have not had enough warning in order to have saved ahead. That will no longer be true 15 years from now.

[Theas18]

Probably been said before but DON'T save it for uni tuition fees, it's the cheapest borrowing they'll ever have, some will never pay it back, and actually IMHO to be aware uni costs actual money is a bit of a motivator not to just have a nice time and do no work!

You don't have enough to educate both privately fully. aCtually with 2 very small noys, unless you take really good investment advice by the time theyreach 16 it isn't going to be worth much at all :(

Tutoring around GCSE /A levels would be worth it- a boost of a grade or 2 is really important sometimes. Extra curricular stuff - absolutely worth the ££ too.

It is difficult with the " shared equally" as they could have very differing needs, but I guess at 11/13/16 when you might have that choice to make then you can talk it through with them. For instance it could make a huge difference to one who was struggling in mainstream a bit versus a brother who is a high flier.

[Bonsoir]

I think that investing the money for university and using the state system would be the most conservative choice. And, providing your state schools are reasonable, the one I would take in your circumstances.

[Talkinpeace]

Playing in the county youth orchestra and playing for county teams does not require school fees
nor does playing in the national youth orchestra and competing at an international level

excessive tutoring for scholarships is reducing social mobility when they should increase it

[lottie4576]

Talkinpeace,
Scholarships are awarded to people who show huge ability/potential in particular disciplines! The reason that many work so hard to get scholarships is because they cant afford to send their child to a private school without one. I
see how advising people That their child could potentially get one if they are of a good enough standard is assuming that someone is entitled to one because thats not how it works (Ive been through the process with my own kids I know what happens). The fact that you said that I was being 'demeaning and offensive' I think is rather rude! And also saying that if you get your child into sport and music they will really enjoy it whether they get a scholarship or they don't and if they don't go in for a scholarship at least they would have something that they excel at but at the same time thoroughly enjoyed doing growing up

[Talkinpeace]

lottie
your sense of entitlement about scholarships is demeaning and offensive to those who need them : do shut up

[lottie4576]

If I were you, I would go sate primary, good prep school from 11+ to get into a good senior school for GCSE's and A-levels/IB. The prep school, if it is good, will be able to help your child get scholarships and by getting them playing instruments and doing sport during primary school years, not only will they love it and meet loads if new people but if they get to a good enough standard they could win scholarships to a prep school and/or senior school. With your children at such a young age you won't know what they are particularly good at until later probably but there is no reason why they wont be able to get a scholarship in art/sport/music/drama/DT/academic/dance. By sending them to a good primary school but also giving them loads of opportunities it will not only benefit your children but it could potentially also benefit you financially

[ISingSoprano]

I agree with Talkinpeace's first post on this thread. Use a good state school and add value to that. If the money is for 'education' rather than 'schooling' I would include family trips to places like Paris, Madrid, Barcelona, Rome, Amsterdam etc and visit galleries, museums etc.

[mustbeabetterwife]

still following this thread - my mind does change every time I read a new post though!

absolutely no plans whatsoever though, as stated upthread, to spend money on us, the house, renovations, extensions...my boys will be sharing a room for the next decade and have no plans in the slightest to change that.

[Talkinpeace]

£100k is NOT a lot of money in terms of private school fees.

The two kids are a year apart in age.
School fees rise at double inflation. Extras add on around 25% (music, trips, sports)
Returns on savings are around 2% and on investments around 5% averaged over 10 years

100k now
one year interest added = £102k
two years time : 1 kid at school costs £15k, interest added, balance = 89k
three years time, two at school etc ... balance = 60k
four years time ..... balance = 28k
five years time ..... balance = nil
and another 12 years of school to fund

OP
stick to my original plan.

[lottie4576]

100k is a lot of money and you are also earning a lot on top of that! If they take up instruments then they could easily get a music scholarship if they put the practice in

[Newbizmum]

The first thing is to forget about this "high interest account" idea. The length of time and so forth needs a more rounded approach and investments are probably the key.

Personally I think you need to address the 2 bedrooms issue. Kids growing up really should have their own rooms. Extend or move, but factor it into the bigger picture. I would think about moving so you are 100% in the catchment area for the best school.

From 100k you can probably afford to pay £30k on fees at a real push but if half were covered, you'd probably be ok. Factoring that in, paying fees from cash now whilst investing the money until fees become greater as the children get older should see the £100k cover all of one child with some to spare.

[Talkinpeace]

lottie
£100k will cover 1 kid through school with extras (just) but not two.
The assumption of scholarships I find rather crass

[ancientbuchanan]

This is such an obvious thing to ask, but you said it had to be restricted to schooling. Have you taken advice on what that covers? It is far mire restricted than, say, education.

[lottie4576]

I think your best option would be to go to a prep school for year 7 and 8 so that you can prepare for the huge difference academically when you go from private to state especially at senior school! Then go onto a private school for the senior school as well as they will get excellent results and achieve lots in other areas too, the prep school will be able to help them get scholarships but make sure through the primary school ages that you help them academically and get extra lessons if and when needed. You will also be able to save some more money on top of the amount you have already. Good lick with it all! And I would love to her what you decide

[Talkinpeace]

Forma
I've told DS he's going to Stanford so I can visit him there

[FormaLurka]

Use the money to pay for DC to take his/her degree at University of Miami/Hawaii/

[Polyethyl]

OP don't joke about playing the harp! My foolish parents let me make that idiot choice when I was 7. I will be encouraging my daughter to choose an instrument she can pick up and carry without help. And which definitely doesn't need two men and an estate car to shift between rehersal and concert hall.

[Talkinpeace]

Private school will eat that money up without much visible gain.

My idea will give you and your kids a lifetime of wonderful memories.

Private school fees have risen at over 5% a year for the last twenty years.
University costs are likely to do the same.
£100k is chicken feed compared with private school fees for two children over the next 20 years.

[mirtzapine]

I would say that you all need to increase your estimation of current annual fees, there are a lot of additional hidden costs, this is my workings based on last academic year spends
We have 2 dd's at prep and pre-prep less 5% sibling discount ~ £15700 pa
Uniforms average out at £350 pa (growth, wear and tear)
Trips average at £600 (I kid you not)
School equipment (pens pencils books etc) £150 (loss and wastage inculded)
Travel to and from school (don't for get that) £500
School Charitable activities (you try telling your DC's your not going to give them a pound each for The Children in need raffle) last year cost us £80 on various charity things.

And it only gets more and more expensive There's a trip next term that's going to cost over £400.

I'm not trying to be a scrooge here but 100K will not get you far at all.

Also you need to factor in annual increase in costs eg a 3% rise year on year.

Frankly, if you start now, by the time they get to 11+ the money will have petered out. Alternatively, if you find a good fund that will manage and grow it over the next 7-10 years for secondary education ( a good call) you may find that the state primary education in your area will not prepare them well enough for Common Entrance Exam, or lay the foundations for the secondary years and your DCs may have difficulty or struggle.

You''l have to face it no matter what, which ever one of the choices you laid out, you will have to top up that 100k

Finally a growth fund for university, you may find that in roughly 20 years time you will have enough for tuition fees.

Whichever choice you make you're going to be damded if you do or damded if you don't.

What I would do if I was in your situation. Find the best pre-prep and prep schools near by. Ones that are feeders for the upper echelon of the private/independant/public school sector. By the time they reach moving on to secondary school, you know that they will easily match and pass the best state school entrance exams. By that point you will know if you want to carry on funding their secondary education at a private school or feel comfortable with the state system knowing they have rock solid foundations. Finally, I would devise a savings plan right now to start to top up the 100k, if I was to elect to go the whole hog in private education up to 18. I have created a spreadsheet with annual cost increments based on what I have experienced over the last few years and I have estimated that to pay for my DD's education to doctoral level I will be laying out nearly £500,000 (I prefer to over estimate dramatically for contingency purposes).