Average cost of private education exceeds £200,000

New figures from Wesleyan Assurance Society show the cost of private school education for day students is now in excess of £200,000 for children starting school at five and finishing at 18.

Parents can expect to pay a total of £204,609* for a child starting school this September (2013), and staying in private education (day school only) until they have completed their A-Levels (2026). This increases to almost half a million pounds (£479,269) for children who board throughout their private school education**.

Before we carry on with Weslyans’ article, we should point out that the most cost effective methods of financing private education through the generations is the Family Trust, so why not ask for our free guide?  It is not aimed specifically at private education  but it provides useful background before you speak to us.

Making provision from birth can save you thousands of pounds…

Parents may be able to ease the burden of school fees by making plans to save regular amounts each month from their child’s birth. The interest earned on regular long term savings can make a significant contribution to costs.

If on the birth of their child, parents started saving £10,923 per year – just under £1,000 per month – in a savings account paying interest at 3% per annum, they would build up enough money to cover the cost of day school private education.  The interest accumulated over the 18 years would pay for almost two years’ fees.

If parents wanted their child to board they would need to start saving £24,129 a year, or just over £2,000 per month.  Again based on 3% per annum interest they would earn £44,946 on their money to help with the costs of school fees.

Bridgit Richards, Head of Marketing at Wesleyan said: “Our professional customers often aspire to send their children to a private school. It is a big financial commitment, which can be made more affordable if parents start saving early.

“Simple things like utilising the full ISA allocations for both parents could have a real financial benefit over your child’s time at school. Equally, other longer term savings products such as a Flexible Savings Plan, which invests in stock market funds but allows you to withdraw the money when you need it, might also be appropriate.  As with any major financial decision, it’s important to take specialist financial advice and understand all your options before making a choice.”

Notes : 

* Day fee day school – Calculation based on current average annual fee for day fee day schools (2012) of £11,082, with an annual inflation in fees of 4.9% applied for the life of the child’s education up to and including A-Levels. 4.9% is the average rate of fee increase reported by the Independent Schools Council (ISC) for day fee day schools in its annual census based on a survey conducted in January 2012.

Child age Academic year Average annual fee Annual savings Annual interest Total savings
0     £10,293 £309 £10,602
1     £10,293 £627 £21,522
2     £10,293 £954 £32,769
3     £10,293 £1,292 £44,354
4     £10,293 £1,639 £56,287
Primary 5 2013/2014 £11,625 £10,293 £1,649 £56,603
6 2014/2015 £12,195 £10,293 £1,641 £56,343
7 2015/2016 £12,792 £10,293 £1,615 £55,459
8 2016/2017 £13,419 £10,293 £1,570 £53,903
9 2017/2018 £14,077 £10,293 £1,504 £51,623
10 2018/2019 £14,766 £10,293 £1,415 £48,565
Secondary 11 2019/2020 £15,490 £10,293 £1,301 £44,669
12 2020/2021 £16,249 £10,293 £1,161 £39,875
13 2021/2022 £17,045 £10,293 £994 £34,116
14 2022/2023 £17,880 £10,293 £796 £27,325
15 2023/2024 £18,756 £10,293 £566 £19,428
6th form 16 2024/2025 £19,675 £10,293 £301 £10,347
17 2025/2026 £20,640 £10,293 £0 £0
£204,609 £185,275

** Boarding school – Calculation based on current average annual fee for boarding schools (2012) of £26,340, with an annual inflation in fees of 4.7% applied for the life of the child’s education up to and including A-Levels. 4.7% is the average rate of fee increase reported by the Independent Schools Council (ISC) for boarding in its annual census based on a survey conducted in January 2012.

Child age Academic year Average annual fee Annual savings Annual interest Total savings
0     £24,129 £724 £24,853
1     £24,129 £1,469 £50,451
2     £24,129 £2,237 £76,818
3     £24,129 £3,028 £103,975
4     £24,129 £3,843 £131,947
Primary 5 2013/2014 £27,578 £24,129 £3,855 £132,353
6 2014/2015 £28,874 £24,129 £3,828 £131,437
7 2015/2016 £30,231 £24,129 £3,760 £129,094
8 2016/2017 £31,652 £24,129 £3,647 £125,219
9 2017/2018 £33,140 £24,129 £3,486 £119,694
10 2018/2019 £34,697 £24,129 £3,274 £112,400
Secondary 11 2019/2020 £36,328 £24,129 £3,006 £103,207
12 2020/2021 £38,036 £24,129 £2,679 £91,979
13 2021/2022 £39,823 £24,129 £2,289 £78,574
14 2022/2023 £41,695 £24,129 £1,830 £62,838
15 2023/2024 £43,655 £24,129 £1,299 £44,612
6th form 16 2024/2025 £45,706 £24,129 £691 £23,726
17 2025/2026 £47,854 £24,129 £0 £0
£479,269 £434,323

For more information on the Independent Schools Council (ISC) census 2012 (average fee data taken from fig. 10 page 11 of the report) visit:

www.isc.co.uk/Resources/Independent%20Schools%20Council/Research%20Archive/Annual%20Census/2012/ISC_Census_2012_Final.pdf