Clients seeking alternative means to fund private education fees
15 October 2019
The fees charged by independent day schools are outpacing the rise in professional salaries, according to Killik & Co’s latest research.
The Killik Private Education Index report revealed that the average cost of a year at private school is now £15,000, up 3% from 2015. In total, the cost of a 14-year education from reception through to upper sixth form has risen by 15% over the same four year period to a staggering £325,600.
According to the investment house, independent day school fees are now more than five times the average in 1990.
The increase in school fees has outpaced the rise in professional wages, with education costs representing an ever higher percentage of disposable income. Annual schooling costs, including extras, account for as much as 39% of a doctor’s disposable income and 65% of an accountant’s.
In an effort to curb costs, some parents are opting to send their children to a state primary school before moving into a private secondary school. Choosing to hold off from sending a child to private school until age 8 or 11 could lead to savings of £63,500 and £117,900 respectively.
Svenja Keller, head of wealth planning, Killik & Co., said: “The rising cost of fees is a concern for many UK parents. Even for those parents with established professional careers, our findings show the need for a plan to meet the ever-increasing costs of funding the private education of their child or children.
“Critically, a financial plan is needed to assess what is manageable with a family’s available finances and what is best suited for each child’s needs.
“We believe that if you have a plan and start to think about it early, it can be achievable. Despite the cost, education can still provide an excellent investment. The most important thing is to make sure that you know what your priorities are, so that your child’s schooling is factored into a balanced plan alongside all your financial goals.”
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