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In my past life, over 20 years ago now, I was an IFA for a firm specialising in school fees. Universities began to introduce tuition fees, in 1998 at a level of just £1000 a year. This increased to £3000 a year in 2004 and now sit at £9,250. Planning for your children’s education can often start from age 3 and go through to their mid 20’s, depending on the degree that they chose. 

It is important to start that planning as soon as you start to think about where your children might go to school. Sit down with a financial adviser and work through the options. It is vital to factor in inflation to your calculations. I have often had discussions with parents who look at their favoured schools and add up how much they think they’ll need based on the current fees advertised. However, in most cases they either haven’t added in inflation or have underestimated the average increase. School fees inflation has risen over many years far in excess of inflation in general. This obviously can make a huge difference to the final amount needed, especially if there is more than one child. 

Some of the most efficient ways are through a family trust. Often grandparents will set up these trusts to settle education fees. What a great way to see the value of your gift, while still alive! 

There are plenty of other options, including self-funding, releasing equity or re-mortgaging. Always talk to your adviser first to discuss the most efficient option for your personal circumstances. 

The key to this is planning well in advance, as I always say “Fail to plan, plan to fail”