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Original poster

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

145 replies

mustbeabetterwife · 26/10/2013 12:50

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.

OP posts:
marriedinwhiteisback · 27/10/2013 08:26

The problem with student loans though is unlike any other loan (and they aren't actually a loan) you cannot repay it early or more quickly to mitigate the interest.

TheFuckersonInquiry · 27/10/2013 08:29

Married. We are also paying the fee upfront for two of our DC as it makes financial sense for them based on their future salaries and our financial situation.

Our experience is that it motivates them to work hard as they know it someone else's money. We also pay their living expenses - they are all really respectful of this and live very frugally. Smile They tend not to work term time but get jobs in the hols.

We will redo the math for our 4th DC once she is ready to go to Uni and make a decision whether to pay her fees upfront then.

As with all these things it depends on individual circumstances

TheFuckersonInquiry · 27/10/2013 08:31

xenia is that you ? Grin

Abuelita · 27/10/2013 08:35

Save it for their university education. Recent research found state school students outperform equally-qualified students from independent schools at university. The Sutton Trust went further: it found that students who'd been to comprehensive schools outperformed their equally-qualified peers from independent schools and grammar schools.

For more information:

www.localschoolsnetwork.org.uk/2013/06/two-new-reports-confirm-that-state-school-pupils-outperform-independent-ones-at-university/

NonnoMum · 27/10/2013 08:37

Depends on lots of things...

I would look at CLASS SIZE in your local primary/infant. If you state school can work it out to have class sizes of 20 or so, then go there fo rthe first few years and get ahead with the basics. Then state all the way.

PrettyBelle · 27/10/2013 09:07

ElizabethJonesMartin, not every child can get into a very good academic day private - having the 'luxury' of living next to the Independent School of the Year, I know that first hand. A non-selective privates are not useless - on that criteria they would beat state schools anyway which take all comers by nature. Hmm

Talkinpeace · 27/10/2013 18:20

Could you not just both increase your incomes to top up to pay the fees?
ROTFLMAO
somebody said she was recognisable and by golly they were right
whoosh - there goes the real world
hi there Warrior Princess

I stand by my original list - with bells on

LondonMother · 27/10/2013 18:39

Could you not just both increase your incomes to top up to pay the fees?

Yes, I was amused by that. Beats me why so few people manage to pull in the salary they feel they would like!

difficultpickle · 27/10/2013 19:48

I wouldn't spend it on uni fees. If you have good secondaries I'd spend it on prep if you don't then I'd spend it on secondary and opt for state 6th form if funds won't stretch to that.

Inclusionist · 27/10/2013 20:01

If your local state schools are great I would split it into blocks of £5000 a year for the next 17 years to enrich the curriculum. Rugby club, music lessons etc but also trips and visits to bring their learning to life. Go to Cairo when one is studying Egypt, Rome prior to starting a Romans topic. Auschwitz maybe. Science museums, Orkney. There's so much thou could do to inspire them to learn with a bit of dosh and creativity.

It's a bit different if your state schools are not good. What is the situation there?

Inclusionist · 27/10/2013 20:01

You not thou. Bloody ipad.

moldingsunbeams · 27/10/2013 20:03

This reply has been deleted

Message withdrawn at poster's request.

Talkinpeace · 27/10/2013 20:05

interest is around 1% after tax
private school fees are rising by double inflation over the last 20 years (6%)
nothing I have seen has made me change my view of the best plan for you

difficultpickle · 27/10/2013 20:12

The inheritance sounds as if it is restricted to 'schooling' which may mean limited to paying school fees rather than extracurricular activities. The OP needs to check the wording and whether it is broad enough to cover the various suggestions on this thread.

lottie4576 · 27/10/2013 20:29

Go to a prep school! I think its worth the money, I would send them from year 3 they will get so many opportunities there an it will give them a fantastic base for their future endeavours! They could win scholarships if they did well making secondary school more affordable and anyway you earn between you a fair sum so there is no reason why you couldnt afford to send them to a secondary school later on. In my opinion the education you give your child is the most important thing that you can give them for the future! (sorry a bit cliche, but its true!) they might get into a top grammar school from their prep school anyway so then you wouldnt have to pay. I dont think you can count on your child wanting to go to uni either. Hope it all goes well! Smile

Talkinpeace · 27/10/2013 20:48

they might get into a top grammar school from their prep school anyway
HmmHmmHmmHmmHmm
not if they are a safe distance from the poison that is grammars
and such attitudes are why the 11+ is in desperate need of revamping

Original poster
mustbeabetterwife · 27/10/2013 21:26

Hi again MN,

I'm still following this thread closely (albeit from the middle of nowhere atm as we're away for half term) so phone is dipping in and out of signal.

My fave post so far is the one where we can be millionaires if we retrain and change careers! Out of interest, what are the jobs in the millionaire clubs?! Seriously though, we both love our jobs and neither of us would change sectors just for money.

I would also do anything to stay at home with the boys for as long as possible and am more than happy to double up as a tutor for them as much as I can. I know this will reduce my earning potential long term, but that's the choice I'm prepared to make.

Just to answer a couple of points before I'm cut off - the primary schools where we live are very good, secondary, not so good.

OP posts:
lljkk · 27/10/2013 21:34

My gut feeling is to plan on state primary, indie secondary (plan to pay for some of this out of own income including whatever earnings OP can contribute by then) and usual loans for uni. Because what if they don't want to go to Uni? Plenty don't. What if their "education" turns out to be lots of extra lessons in music or sport, because that's where their true talents lie?

My nieces were left $625k to spend on education. About $200k was spent on special bootcamp for 1 niece who went off the rails emotionally.

Retroformica · 28/10/2013 05:55

I like the 80k for uni and 20k for tutoring/music lessons etc whist at school

Retroformica · 28/10/2013 05:57

It much depends what your local state schools are like though.

Another option would be to move them so they do years 9, 10, 11 in public school

ElizabethJonesMartin · 28/10/2013 10:11

(On whether to pay the loans upfront if the parent can (and the legacy may well mean only private school fees, not university and it may also exclude eduction so check the terms well), if you are pretty sure that the child will earn a lot and can afford it anyway, I don't see a downside in paying the fees upfront and if that benefits other children whose parents do not pay them upfront that does not bother me at all. If you are anti debt and know their repayments are part of most mortgage assessments whether they are supposed to be or not and this graduate 9% tax is paid on top of 40% tax and 12 - 2% NI in their late 20s I think paying the fees upfront is not necessarily wrong. However if the child is likely to marry and stop work early on or never earn very much at all then certainly paying the fees upfront is financially unwise although those against tax avoidance and wanting people to help the state might well see it as a moral duty to pay those fees if you can afford them even if your child might never earn much at all nor have to repay the loan.

sadsometimes · 28/10/2013 11:54

Private from 11+. You can easily top up on your joint salaries.

Littleredsquirrel · 28/10/2013 12:12

Definitely Xenia

FannyMcNally · 28/10/2013 12:14

I'm hedging my bets at the moment. She hasn't mentioned thick children or basket-weaving GCSEs so I can't be 100% sure.Grin

NotGoodNotBad · 28/10/2013 12:20

What if you decide to spend the money on uni and later it turns out the kids don't want to go?