Back to school in dear old Blighty

Tim, I am in the final throes of relocating my family to the UK and was shocked by the school fees I am being faced with. Is there any way of reducing this financial burden? Gordon

Let's face it Gordon, most parents want the best start in life for their child. Of all the benefits you can provide, none has a more lasting value than a good education where your son or daughter will be happy and successful. And in today's increasingly competitive world, where higher education is seen as the key to success, it is natural that we should want our children to make the most of their learning opportunities.

However, school fees have steadily risen over the years and the cost of a good education is a major expense. Therefore, planning in advance to make sure you have adequate funds to meet these costs makes economical sense, especially if you have more than one child. Making the right financial arrangements today will mean that the decision whether to go on to higher education can be decided on ability, not financial standing.

Similarly, your future net disposable income could be significantly diminished by a heavy school fee commitment meaning that you may have to compromise your own financial goals or lifestyle. So, planning in advance can mean financial freedom for yourself while providing an excellent start in life for your child.

That's all well and good but if you are faced with these fees now then the costs you could be expecting to pay are as follows. An example of the UK costs from the Independent Schools Council is the average termly fee for 2008/9 is £3,933 (Dh23,600) per term. In addition: 

- The average termly day fee at a day school is £3,358 

- The average termly day fee at a boarding school is £4,416 

- The average termly boarding fee is £7,748

Remember, these fees are more than likely to rise well above the rate of inflation; it is considered that fees are increasing at four times the UK inflation rate. If you feel comfortable with these fees, you have a school fees plan in place or your children are beneficiaries of an education trust then you can proceed confidently. The only way to reduce the bill is to compare schools taking into consideration the viability of state schools and a limited number of grammar schools too.

In the current financial situation, not everyone has the disposable income to fund such a commitment. Moreover, corporate benefits that include schooling fees are diminishing so your financial scenario may deem the solutions open to you.

Perhaps the lesson for all of us with families is that the sooner we realise the inevitability of school and higher education fees, the sooner we should start planning for them financially. We must also consider the unlikely event of death or serious illness, this loss of income would seriously affect the family and impact the ability to afford the education costs.

Proper planning would ensure the school fees liability is met and thereby secure our children's future. The longer we put off such decisions the more expensive the solution becomes.

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