Private School fees - how do you manage?

[Moneymoneymoneyitssofunny]

Considering private option for DCs (in next few years) but just curious as to how people manage their finances to ensure that school fees are paid for duration of schooling. Paying out of earned income alone seems risky to me in case of unexpected redundancy etc but we have no source of help from grandparents or other, just modest savings, so tell me - what do other MNers do? Remortgage property?save up in advance? have other source of finance such as family members to help? Use specialist financial planners who deal with school fee planning? I'd be interested to get some advice/ideas.

We paid out of income, and had income protection, critical illness cover and life insurance etc to cover any unexpected disasters.

In these economic hard times, many independent schools will negotiate special arrangements for families who fall on hard times - they would rather get the money from you eventually than lose you as a family altogether.

Combination of income, money from GP's and releasing equity from mortgage and me going back to work.

Don't forget that uni fees and costs too as these are huge. Then you may need to help DC with housing etc If it's tight I would exhaust all state options first.

It would probably be a good a idea to see a financial advisor.

Once you have realised you might be signing up for bills of this type, you need to start saving, and you are likely to need a variety of investments, and a thorough consideration of level of risk with each. You also need to make sure that enough money is available at any particular point to tide you through disaster. So getting some into long term, possibly equity based, investments might be best done early on; and you may need some in straightforward cash savings but with different lock-in periods to try to get an inflation-meeting return. There are also (I think) specialised insurances, which pay out more in the early years (when you have years of bills ahead) then later in, and costs are loaded accordingly.

Uni fees - We've put £100 a month aside for each child since birth into shares. This is on track to provide a lump sum of £30k or so when they reach 18, which is earmarked for uni costs.

School fees - Fortunately earned most of this via bonuses which were then put into savings. We have a flexible mortgage at a very low rate, and we could borrow from that and eventually repay via pension lump sum etc. But equally we are aware that we are only committed to private schooling for the "next phase", so could move out at the end of year 2, 6, 8 or 11. So rather than feeling you are committed for 7 years at a time, I would think about what options you might have at the next usually "break point" and plan for that. The longest period is the 4 years at KS2/juniors.

State primary then I went back to work to pay for secondary. It's been a struggle, and a
We have used equity form our house occasionally. The DCs have really benefitted though.

Watching with interest

We are only doing private for the last year of primary school and then through high school. I received a substantial inheritance a few years ago and school fees are effectively paid through income from that. However, our intention had always been to go private for high school and we had been saving for a number of years. We had £100k in savings pre-inheritance, made up from our annual bonuses (at the time we both worked in FS and the company has a generous bonus scheme) and we would have made up the shortfall through ongoing savings. We have two children- one at a private day school and the other currently in a state school - she will join her brother in just over a year. Fees including extras are around £12k pa.

We earn it. Currently we're about a year or two ahead.

Yes, there's a risk the income might reduce, or God forbid, stop. That's a risk we just have to live with.

The only financial planning we've done for it is to, a) make sure we earn it, and b) put life insurance in place so that the fees covered if one of us goes.

Investigate each schools means tested bursary policy thoroughly. Most have an "income" and a "capital" test which includes the value of your home. The implication is that if you can raise more mortgage or move into a cheaper house you can pay the fees.

If you don't have capital in a house then many schools will help with fees.

There are one or two schools left that give a real scholarship for the brightest kids. I think Forest School in NE London does (from memory) with upto 50% off fees available on merit (regardless of financial circumstances).

In my opinion, forget a financial advisor. You'll pay a lot for very simple advice and might get sold a product that you don't need.

Just know that school fees go up at between 2-5% per year ......

I went from part to full time which covered the cost. Then husband got made redundant and we remortgaged the house. My sister helped out a LOT too during that period. It was his gcse year so couldn't pull him out of school. A bit skin of our teeth, but we did it!

Youngest wants to be at the local comp with his mates. Guilt made me badger him to reconsider going for the 13+ but secretly, I'm relieved he wasn't interested in his brothers school.

We invested five years worth of fees in an easily redeemed investment as a just in case measure when the DC started in reception.

Fortunately we haven't needed to cash it in as income from work and other investments has been at comfortable levels.

The security has been nice.

That said I have plenty of mates who pay fees out if income.

We've largely paid out of earned income but have reserves to draw on if needs be - savings, shares, isas etc. Endowments starting to pay out and dh was made redundant last year (fortunately found another position quickly) so will be using some of that to pay down the mortgage capital and reduce longer term outgoings. Beware of the annual and incremental increases in fees though. We are paying at secondary 10 times what we paid in Reception !

This is a really interesting thread. Although Christ has it made me panic! I thought I'd be able to manage just about on our salaries but sounds like everyone has the money sorted in advance etc. we'd be doing it by skin of our teeth month to month so maybe need to reconsider...

So far earned income with a term or two saved in advance. DH just returned to work after a period of study so still rebuilding financially. I am not currently working but plan to once DS reaches 2 to cover his fees.

Hopefully our income will increase over the next few years to make it less of a stretch. Private was not a choice for us, we live abroad and here state schools are only used by the very poor and every so often you hear of a pupil beaten to death by a teacher, not to mention woeful standard of education, all the lessons required to pass the exams only provided privately on payment to the teacher and major discipline problems. State schooling here is not safe, quite apart from there being no education involved. If we returned to Europe DCs would be going to state schools.

If we were unable to afford the fees we would have to ask for family help, and failing that, move DCs to a cheaper (but far inferior) school.

every so often you hear of a pupil beaten to death by a teacher,

Where do you live?

Forgot to say, DCs are in the French system because English schools are too expensive here for the quality of education they provide and unless you are paying more than £10k a year do not employ qualified teachers.

Egypt

alteredimages where ARE you that pupils get beaten to death by teachers? Sounds horrendous!

Sorry just reading thread with interest. DCs rather small still.

Oh x post!

Altered Fwiw i am from a country where only poor kids go to public schools. Middle class kids such as myself go to private schools. I know that in the uk things are different but i guess that part of my wish to send dc to a private schools is because it is the only sysmem i know.

Ds went state primary.

We decided we wanted independent secondary when he was beginning of year 5. Could afford fees out of income but never wanted to rely on that, so saved like absolute buggery for two years, cashed in some other small savings and then moved (downmarket) giving us the double bonus of no commuting to school costs and freeing up some equity. That gave us five years of fees (incl inflation) in the bank and a great cushion to save up for sixth form etc.

Worked so far for us because finances have changed in the meantime (health reasons) and it's so nice not to worry about where the money is coming from as we have been more pleased with ds's school than we even imagined.

Mainly out of income. One set of prep fees come from the same pot we used for nursery fees and expect to continue in this way. If not there are savings to cover it or that child can move to state at the end of that key stage. I don't see a situation where that will be necessary. The other has always been covered by bonuses. We have just put away another years fees for that child from this years bonus and then there's only a year to go which we anticipate coming from next years bonus and if not we can cover it from savings.

Plan is state for all from 11 but if not can cover fees from income / savings and equity and will offer the option to go back to private for 6th form via income / savings or equity release if necessary.

My friend had her 3DC in private school. All three started at the age of three. Financial problems started through no fault of their own as eldest approached GCSE. School initially accommodating. 12 months later, financial situation bad & informed school about payment agreement (via). At this point 2nd child due to start sitting GCSE' s, school suspended son week before exams began. Child did not do as well as expected. Insisted on charge on property to ensure weren't part of payment plan.

Her children had represented the school well, both academically & in sport . They felt deeply betrayed. There was no legal solution as private schools don't have to follow education laws. She later discovered that the boy who sat his exams couldn't concentrate while there,cos he kept expecting to be pulled out in front of his friends. I appreciate its,a business but they sell themselves aspurveyorsodeducation that sometimes they can't deliver.

Her kids then went to local state school & flourished. Private schools don't always provide best (ie dyslexia, problem solving). This particular private school is selective & regards itself to be amongst the best.

When I asked my friend if she would do it,again (ie, pay) she said definitely for junior school, not for seniors as her kids benefited from the help provided.(I would point out, her kids are bright & would probably have achievedsucceedewherever they went)

It was a deeply stressful time for the whole family.

I never went down that route & my kids have all done fine. Think very very hard about this commitment & best wishes for what ever you decide x