The True Expense of a Private School Education

For every child starting school at the age of 5 and finishing at 18, the average Private school fees now total 1,178,000 AED (£199,627), as suggested by the latest figures from Independent Schools Council (UK). Sending a child to boarding school costs more than double this, at 3 Million AED (£508,768) per child.

If you have no education fee plans and investments in place and intend to fund your child’s education at a private school by savings, then as per the current requirements you must save 5,000 AED every month, right from the day your child is born. You will need to save 12,800 AED (£2,174) per month if you want to send your child to a boarding school.

But if your savings account pays a 2.5% interest per year, it could save you the equivalent of one year’s primary school fees over the course of education, according to the financial services specialist Wesleyan.

It’s also true that the earlier parents start saving for their children’s education, the more interest their savings accrue, which can be put towards the children’s school fees.

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Samantha Porter, group sales and marketing director at Wesleyan, says: “Simple things like using an ISA to save tax efficiently could have a real financial benefit over your child's time at school. 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.”

The latest study follows research conducted by the Lloyds Bank that found private school fees has risen by a fifth in the past five years – four times faster than the rise in average earnings.

Sarah Deaves, private banking director at Lloyds Bank, said: “Private school fees have increased to almost £12,500 a year, which is four times more than the rise in average earnings over the past five years. It is, therefore, becoming increasingly vital that parents plan ahead as early as possible to ensure that they secure the future they desire for their children.”

As with any long-term financial planning, it is important to seek advice from a trusted source. Speaking to a qualified independent financial adviser before you make a decision can help you understand all the options available in the market.