Wondering how much it would cost to send little Annie to a posh school? Best start saving now as fees have gone up 200% in 5 years...
Most of us haven't even sorted out our own finances let alone started thinking about saving up for the education of our children. Well the sooner you do the better. Especially when you consider that it costs a mouth-watering £100,000 to put a child through private schooling.
But don't be put off. It can be easy to set aside some cash and still enjoy a yearly ski trip to the Alps - or whatever it is that takes your fancy.
Creating a nest egg
With the luxury of time, it is not too difficult to save now to fund future education fees. Just setting aside £100 a month can go a long way. Look at the wider picture as well and consider any windfalls you may get from an inheritance perhaps, or gifts from the children's grandparents, who are often more than happy to lend support if they can.
Child Trust Funds
The Child Trust Fund is one of way putting money aside for children - but it is not to everyone's tastes. The Government-backed scheme gives parents £250 at birth and another £250 seven years later. Parents can contribute a further £1,200 a year to create a nest egg.
Turning 18
The trouble is, the children get access to the fund when they turn 18. While you would hope they will set aside the money for university fees or a deposit on a house, it is far more likely they will blow it on a drunken trawl around the world.
Another negative is if family finance suffer a set-back, through sickness or unemployment, the Child Trust Fund would be untouchable.
What is the alternative?
There are many. Get in touch with a financial planner who can suggest the best ways to plan your finances.
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