One in five parents are putting money aside for school fees before their child is born, new research from Investec Save has revealed.
Additionally, nearly a third (29%) begin in their child’s first year, while 19% start when their child is between the ages of one and two.
The average private school charged £7,382 a term per student in January 2025, up 22% from £6,021 a year earlier, exceeding the additional 20% VAT the Government has added to private school fees.
On average, Investec Save estimates that around a quarter (25%) of annual school fees will come from cash saving accounts. However, only 22% of parents have anything close to half (40%) of the school fees in their savings accounts.
David Hunt, head of savings at Investec, said: “While the cost of private education is soaring, our research shows that cash savings accounts play a vital role in helping parents afford private school fees.
“The right mix of accounts is key – instant access for when fees are due, alongside notice and fixed-rate accounts to earn a stronger return on savings for future terms’ fees.
“Starting to save early, even before birth, is also advisable to build up the substantial savings pot needed.”
Main image: gary-j-stearman-V6h0e66DemM-unsplash
