Any advice on planning school fees ?

[mummyloveslucy]

Hi my daughter is in the nursery department of a private school. She loves it there and since she's been going we have fallen in love with it too. It has such a lovely atmosphere that it gives you a sense of well being just being there. We have decided to keep her there for the juniour school and then let her take her 11+ and hopefully go to our local grammer school. Our fees have just increased by 8% though. I don't know if they will keep going up this much every year, but if they do then it will be very hard to keep her there. Does anyone know of any fee planning advice? I'd hate to have to take her out of the school especially if she's enjoying it so much.

No planning advice, but yes, private school fees do tend to go up by a lot more than inflation. Also the fees will be hiked up for each stage eg junior school more than nursery. Sorry that sounds a bit negative, but better to know the reality.

8% is pretty average I'm afraid. Agree they tend to make even greater jumps at Recpetion , Year 3 and Year5/6 too .

I think financial advisers will advise on school fee planning. Or if you look on the web there are lots of sites offering help - plans vary from paying in money each month, putting a big lump sum down now, to everything in between.

The school might also offer a discount for paying fees for a number of years unfront, though this probably won't be as good a saving as you would get if you had invested the funds now IYSWIM, but you would have the certainty of them being paid.

We are looking at plans now, sorry I can't recommend any yet. Will probably use ISA allowance for savings in the short term anyway

Yes, thanks. I've worked out the finances as if she was at the top end of the juniour school. I just didn't expect the fees to go up so much. This year it has gon up by £9 a week, but if it keeps going up at this rate it will be hard.

Agree 8% is standard and what any financial adviser would tell you to plan for. As well as the reception and Year 3 jumps, depending on the school you may find the cost and amount of uniform significantly increases as she goes up the school, though most schools will have some sort of 2nd hand sale. If the full 7 years is stiff then you could look at doing infants at a state school and going back to private for Years 3-6. That said, if I recall correctly this school goes past Year 6 to Year 11 or further. In which case are you happy that they do a good job in preparing children for the 11+?

Yes they do coach for the 11+. The pass rate is very high. I would be put of doing infants in the state school, as they use the first year there to learn through play. And only do half days. At the school Lucy's at, she will have been used to going full time. She would be used to a more formal schooling and wearing a uniform. I just think that going from one to the other, and leaving her friends behind will be hard for her. I think she might think oh this is a laugh, I don't need to do very much.

Very unusual for a state school to do half days for the whole of reception, especially as the law states that children have to be in FT education from the term after they are 5 - so January for some children.

Have you looked at your local state schools?

I guess that you then have to consider whether you can afford for her to go all the way to year 6 bearing in mind that 8% rises are typical rather than unusual. And there will probably be more extras along the way in terms of instrumental lessons, after school activities etc.

I think threy might have ment from 4.5-5 in that case. I just remember them mentioning the 1/2 days to start. It's such a hard decision to make. I think I might offer to do volentery work at the local state school, hearing them read or somthing. That way I could see what I think of it and compare it to Lucy's school. She has a really lovely set of friends at the moment which would make it hard for her to leave.

Well imo it will be a lot more difficult if you have to move her at Year 4 or 5 because you have either had another child or you can't afford the fees. There really are lots of lovely schools out there.

We projected figure of 8% per year, but in reality it has been much higher increase.

I'm sure you are aware that each year group's fees are more even without taking into consideration the inflation rate.

Ours had a huge unexpected jump a few years ago to make up a teachers pension shortfall and again for the start of this year to bring the more in line with the boys prep school (on the same site, different school under the umbrella of one school) which irks me as the boy's day is longer and they get first option on all pitches, halls etc.

DD has also recently discovered to have a problem similar to dyspraxia (but not, more propreception) so we pay for all senco and extra help she gets.

DS is in p/t nursery (of a diff prep school) and has physical/learning disabilities and has to have a one to one which we pay for.

Bear in mind that it is not just the fees, our 'extras' every term can run into hundreds - insurance, school trips, theatre vising the school/school visiting theatre, going to farms, end of term picnic/party, visit from Father Christmas/Easter Bunny etc And we haven't even got to the PGL/skiing are yet.

Uniforms are generally much more expensive and there are many more items to buy - DD has to have, running trainers, indoor trainers, play trainers, football boots (for hockey and X-country) as well as school shoes. Although most independent schools have a good second hand shop, where the sensible one amongst us vie for the newest looking blazer.

TBH we could not have planned for every eventuality, no matter how good our accountant is (and he's ace!).

It's a bit like doing a huge restoration/building project on a property - you set your budget but allow a 20% contigency, which you know will get used up anyway.

There is so much to concider. It is a huge decision. I love the school, Lucy is very happy there. All I need to do now is win the lottery.

Here's my advice which you can take or leave.

I would snap the hand off a primary school that offered the first year at school on a part-time basis where the curriculum was based upon learning through play. That is exactly what a reception child needs.

That said, I have one child in junior school and one child in senior school and I set aside over £300pw every single week of the year to cover their fees which are fairly middle of the road for private. Let me be a horrible warning.

Mummy

Sorry this is one of our problems too - unfortunately the costs do rise way ahead of inflation.

I think it is a case of beg borrow or remortgage. Or earn more which is not always easy to do.

It's hard - sorry - no easy advice here

We were told to budget for up to 10% increases in fees each year.

If your see an IFA they will be able to do planning for schools fees with you. Ours was fab and created a spreadhseet showin how it all worked out, based on different rates of increase,, etc.

Oh and DD's independent school followed the same foundation stage for te first year as state schools. This is good for several reasons, especially as it then means you can use your childcare voucher things against the cost of fees until your child turns 5 - makes a decent saving!

This is interesting, and quite daunting to hear about the rises each year. I'm constantly looking into options for ds when he's 7 (currently in state infants).

I've found a private school fairly locally which has a great special needs provision included within fees (DS has co-ordination difficulties so may need to use this) I'm gathering it might be quite unusual to have special input included?! They also teach boys and girls seperately for the Core subjects which I do like the sound of.....

it's just so scary thinking of the future though and being able to pay till he's 16! When you see an IFA do they go through what happens about unexpected life events - do people pay insurance on school fees?

sorry to butt in with my own questions MLL but it sounds like we are thinking along similar lines!

DS was in an independent secondary (not one of those investigated by OFT) between 1998 and 2005 and his fees went up by 10% each year. Reasons - new buildings and paying staff in order to retain/recruit the best. School also had to pay massive amounts into pension fund for teachers. From what I can see, the fees have carried on increasing at a similar rate since then

You would need to get critical illness cover or life insurance that covers the amount you need I guess.

I think the main thing about school fees planning is that unless you can afford to pay out of income, then planning needs to start in earnest many years before school fees start.

You also need to bear in mind that university costs will be at least as much as school fees.

If you plan to use private schools, then getting into the habit of saving the school fees figure from income means you don't get used to having a higher disposable income, and you build up a hefty cushion to cover unexpected rises or problem periods, or to cover those years when you have more than one set of fees to pay.

We have a financial cover policy that is entirely structured around our expected education costs until our children have finished 4 years at uni, including a gap year (will probably not be nec for DS but didn't know that when started policy). It is a fairly mostest monthly outlay and we are hoping never to use it.

This is a first death policy, so if either one of us dies it will pay out. We own our own international company, so assets from that would be enough if neither of us could work again as critical illness cover is extortionately expensive.

Many schools give out a fees insurance leaflet, ours do one that doesn't need a medicalhence inflated premium, it was cheaper to get our own.

DS1 went from a private nursery attached to a pre school, to the local primary. Can I just say that in the state sector, parties seem to be cheaper? There are fewer where the whole class is invited (so far, none this academic year) so there are fewer presents to buy and less worrying about your DC's expectations about his/her own party. At the pre-prep children with birthdays seemed to bring in cake for the class as well.

I'd expected expensive uniform and trips, but the parties was a surprise.

fridayschild, how did he feel when taken out of the private pre- school and put in to the state primary? That's one of the things that worry me. That she'll be upset at leaving her friends. If she started the state primary she would start at 5. At her nursey though she goes in to transition at 4.5, where she gets her uniform and does 2-3 sessions at the juniour school to ease them in.

The other thing to consider in the private / state debate is school holidays. If you are planning on working, private schools have much longer holidays, so that is more time to find alternative childcare ... and more money to pay!

School fee planning schemes are generally expensive and not particularly good. Or so my IFA says. He also says unemployment insurance is ridiculously expensive and no good.

The sort of insurance other people have talked about - critical illness etc is widely available and quite good but all it does is help you if you fall ill. If you fall redundant rather than ill, or if you simply don't have the wherewithal, then critical illness insurance may not be right.

MLL, don't assume that all your DD's friends will be staying at the school either. Plenty of people move area or transfer back to the state sector. Or have another baby and cease to be able to afford it. It would be a shame to plan round DD's friends and then find out they'd upped sticks anyway.

I'd say if you can't really afford it, don't spend your money on private primaries. Use it for a few well chosen extras and save it for secondary school fees.