In partnership with
More parents than ever are seeking to send their children to independent schools, and at the same time fees continue to rise. Hampden & Co Banking Directors Clare Ansell and Stephen Buckland discuss how to plan for what can be a huge financial commitment.
They say you can’t put a price on education but, actually, you can. According to the Independent Schools Council census for 2020, the average annual fee for a place at a UK boarding school now stands at £35,289, while the average cost for a day place at boarding schools is £19,908, or £14,940 for independent day schools.
Not that the cost, which rose by an average of 4.1% last year, seems to be putting parents off. There are now 537,315 independently educated pupils in the UK – the highest number since records began in 1974.
Yet even for those in a comfortable financial position, it’s clear that independent schooling represents a significant investment over several years – particularly if you have more than one child. And that’s without factoring in all the associated costs such as uniforms, sports equipment, musical instruments, clubs, school trips etc.
The clock is ticking
As the mother of a nine-year-old son, Hampden & Co Banking Director Clare Ansell understands the potential financial commitments all too well.
“Even if you’re only thinking about senior school, once your first child starts primary school, the clock is ticking,” she says. “When we researched our options, I was struck by the variation between fees at different schools. And with the costs being so high, there’s a lot to be gained from starting to plan when your children are very young, or even when you’re just thinking about having a family.
“School fees represent a big commitment over many years. We understand the importance of being there for the long term.”
Helping where other banks can’t
Stephen Buckland, a Hampden & Co Banking Director based in London, helps clients manage their school fees – sometimes for the length of the children’s education, and sometimes just for a short spell when the parents need a little extra to tide them over.
Options that often come into play are remortgaging, personal loans and borrowing against investment portfolios.
“We can’t give advice on investments but it’s well worth getting in early to speak with a financial adviser or a wealth manager that you trust,” says Stephen. “There are tax savings that can be made with a bit of forward planning and we’re always happy to join in those conversations from a banking perspective.”
“We often help the whole family as their lives evolve, with solutions that span generations.”
There are also other options beyond banking. If you have cash available you could, for instance, offer to pay your school fees for a few years in advance, in return for an appropriate discount. Schools also offer discounts, sometimes significant, if you send more than one child to the same place. And then there’s the option of scholarships and bursaries. A third of all independent school pupils now receive help with their fees, with the vast majority of that help coming from the schools themselves.
“School fees represent a big commitment over many years,” adds Stephen. “We understand the importance of being there for the long term. We enjoy getting to know our clients personally and develop a full understanding of their finances and priorities in life. It means we can often help them when other banks wouldn’t be interested – and that’s even more important in this uncertain era, when circumstances can change so quickly.”
“It’s about reassurance,” agrees Clare. “We often help the whole family as their lives evolve, with solutions that span generations. For instance, we have a few clients who had paid off their mortgage but have since taken up our Retirement Mortgage to help their children and grandchildren at a time when they need the money most. It provides the older generation with the satisfaction of seeing the impact their generosity has and can enable significant inheritance tax benefits that advisers can help them with. Money is a sensitive subject but opening up that conversation with the wider family can be very helpful when it comes to schooling.”
Get in touch
For more information on the banking services available from Hampden & Co, please contact:
 |
Clare has 19 years’ banking experience and started her career in 2001 with Tesco Personal Finance before joining The RoyalBank of Scotland. In 2016 she joined Handelsbanken where she helped to set up their new Dunfermline office. Clare holds the Certificate in Mortgage Advice and Practice. She joined Hampden & Co in 2020. |
Clare Ansell
Banking Director
Tel: 0131 297 0193
Mob: 07483 018314
clare.ansell@hampdenandco.com
|
|
 |
Stephen started his career in banking in 2005 with Duncan Lawrie. He is an Associate of the Institute of Financial Services and holds an MBA and a BSc (Hons) in Financial Services, as well as a Certificate in Mortgage Advice & Practice. Stephen joined Hampden & Co in 2017. |
Stephen Buckland
Banking Director
Tel: 020 3841 7498
Mob: 07767 870007
stephen.buckland@hampdenandco.com |
|
About Hampden & Co
From our offices in London and Edinburgh, we provide banking expertise to personal and professional clients. By focusing purely on delivering a superior banking experience, provided by expert bankers, we have no other competing priorities or distractions. Each client has a nominated banker who provides a service tailored to meet their needs, and those of their family and business.
London Third Floor, 36 Dover Street, London, W1S 4NH. Tel: 020 3841 9922
Edinburgh 9 Charlotte Square, Edinburgh, EH2 4DR. Tel: 0131 226 7300