UK private education costs a lot – we understand
Sums this duration and size, should be meticulously planned
When your child’s school is chosen then find out the termly fees
Make a forward cash ladder schedule showing when you’ll be paying these
Using compound interest and your own inflation estimate
Work out what you’ll really pay (by now you might be in a state).
However, the work isn’t finished; now you need to work out what
You would have to save each month to cover off the entire lot
Remember that the cash you save will generate some interest
Adjust for this in your cash ladder once you know where you’ll invest
Use the annuity formula to make this tricky calculation
Check your math for errors as these can cause serious aggravation
If you have some cash already set aside for future needs
You can make a lump sum investment before your savings balance recedes
If you need to know how much, then use DCF formulae
This will give you the right answer – try it out and you will see
If you baulk at all this math – let’s face it could take all day
Come to allaboutschoolfees.com and we will take the pain away
