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Parents need to save nearly £1,000 a month to keep pace with rising school fees

Parents need to save an average of £907 a month from when their child is born if they want to send them to private school, according to new figures from Wesleyan, the financial services specialist for professionals.

Based on the current cost of private school fees for day students, estimated to total £211,8721 from age five to 18, Wesleyan has calculated that parents would need to save £10,885 each year, or £907 a month, from the birth of their child, to build up enough money to cover the fees.

The interest accumulated over the 18 years of saving (£15,937), based on saving each month in a savings deposit account paying interest at 2.5% per annum, would cover the equivalent of one year's average fees.

Parents intending to send their children to boarding school, will require savings of £26,953 a year, or £2,246 per month to achieve the total cost of £525,1382. Again, the interest earned over 18 years (£39,982) would cover a year's average boarding school fees.

Alan Whiting, Wesleyan Group Head of Marketing, said: "We know our professional customers want to give their children the best start in life, and for many this means investing in private education. This can be a big financial commitment and starting to save early can make a real difference, especially as the cost of private education is continuing to rise.

"The key is to make money work harder and use the returns generated on savings and investments to help build a healthy fund for the future. Parents should consider making use of ISAs and other longer term savings products, such as a Flexible Savings Plan, that invest in stock market funds and allow money to be withdrawn when needed.

"As with any major financial decision, it's important to take specialist financial advice and understand all of the options before making a decision."

Wesleyan is a mutual financial services specialist for doctors, dentists, lawyers and teachers.

'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

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© 2018 Wesleyan Assurance Society