Investing to fund education is at the forefront of people’s minds at this time of year, as university terms start.
Currently, university tuition fees are a maximum of £9,000 per year, but this will rise in 2017 to £9,250, and may be linked to inflation. Add on to this maintenance loans that many students take out, and it’s clear that a high proportion of graduates leave with a hefty debt. You can find more about student finance here.
Many parents choose to support their university aged children by contributing towards their day-to-day living expenses. Indeed, with the maintenance loans barely covering their rent, if at all, parental support is a necessity.
Similarly, if you decide on private education for your children, then school fees are an expense you’ll need to factor into your finances. It’s been estimated that between the ages of five and 18, each child will cost on average of £200,000 to educate privately – that’s a fair chunk out of anybody’s income.
So how do you go about investing to fund education?
At the heart of all sound financial decision-making is planning. The sooner you plan for school fees (if you choose the private education route) and support through university, the more readily you will be able to meet these financial demands.
Saving for school and university funding is like saving for any other sizeable purchase – it’s all about planning and picking the right investments.
The team here at Hartsfield can help. We’ll give you objective advice on investment options and help you come up with an approach which fits in with your personal financial circumstances.
We’ll work with you to devise a strategy which enables you to support your children throughout their education, right from early years education and on through university.
Please get in touch with the team at Hartsfield team to talk about investing to fund education.
Categorised in: IFAs
This post was written by Paul Verwoert