{"id":44271,"date":"2025-09-04T10:15:01","date_gmt":"2025-09-04T10:15:01","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-uk\/?p=44271"},"modified":"2026-05-26T18:20:00","modified_gmt":"2026-05-26T18:20:00","slug":"financial-planning-for-private-education-and-beyond","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/financial-planning-for-private-education-and-beyond","title":{"rendered":"Financial planning for private education and beyond"},"content":{"rendered":"\n

The idea<\/strong><\/h2>\n\n\n\n

Faced with the increasing cost of private education \u2013 now subject to 20% VAT<\/strong><\/a>1<\/a><\/sup> \u2013 one couple needed to know: \u201ccan we afford to give our children the best opportunities without jeopardising our own financial future?\u201d

They had always planned to send their children to independent schools, but new tax changes and escalating fees made them question whether that vision was still financially viable.<\/p>\n\n\n\n

Both were in stable professional careers, with growing pension pots and a mix of cash savings and investments. But they also had a mortgage to consider, rising household costs, and a desire to retire early. They weren\u2019t just asking: \u201ccan we afford it now?\u201d They were asking: \u201ccan we afford it without compromising other priorities?\u201d<\/p>\n\n\n\n

The challenge<\/strong><\/h2>\n\n\n\n

With higher interest rates, household bills, and pension responsibilities also in play, the couple wanted to explore funding options that wouldn\u2019t entail short-term sacrifices or long-term regret.

School fees had already increased by 8% year-on-year, and with the introduction of VAT, the projected total for two children from Year 3 through to Year 13 had risen to more than \u00a3410,000.2<\/a><\/sup> While the couple had the resources to meet some of the cost, they needed a sustainable plan \u2013 one that wouldn\u2019t deplete long-term savings, derail their retirement strategy, or leave them financially exposed.<\/p>\n\n\n\n

They also wanted to bring grandparents into the conversation. Both sets were eager to contribute, but none of the family knew how to structure gifts in a way that would be tax-efficient. The couple were also weighing the trade-offs between drawing on pensions, cashing in Individual Savings Accounts (ISAs), or exploring trusts.<\/p>\n\n\n\n

They knew what they wanted to achieve, but needed guidance to realise their goals.<\/p>\n\n\n\n

Making it happen<\/strong><\/h2>\n\n\n\n

We started with a conversation about values, not just numbers. What did a good education mean for their children? What did financial security look like for them? From there, we built a tailored plan that modelled the full cost of school fees, term by term, over more than a decade \u2013 factoring in inflation, VAT, and alternative funding scenarios.<\/p>\n\n\n\n

From a wealth planning perspective, we evaluated multiple financing streams:<\/p>\n\n\n\n