What are the options for the money you save?
The main savings vehicles are collective investment vehicles
- ISAs, OEICs, unit and investment trusts, investment bonds, National Savings and high-interest deposit accounts with building
societies or banks - or a balanced mix of these. Make sure you keep your savings in as many tax-sheltered vehicles as possible.
And hang on to any PEPs (Personal Equity Plans) for as long
as you can. Once you have cashed them in, they cannot be replaced. You can change from one PEP provider to another or from
fund to fund if you wish.
Try not to cash in an endowment policy in its early years for
a quick funds fix. It will be worth very little. They are always best held to the end when you benefit from the full maturity
value.
Help, I've left it too late!
If you haven't built up enough funds in advance, the alternatives
are to pay-as-you-go out of income while your child is at school, or borrow to repay later once they have left. Most people
end up using a combination of methods, especially once two or more children reach secondary school, or begin to board.
Look for bursaries and scholarships or 'comp' schemes
arranged by most private schools to spread the fees. The bursar will discuss savings, which can include discounts on fees
paid in advance or a cap on future increases in fees. Don't be afraid to ask for discounts if you put a second child
through the same school.
