Soaring private school fees are caning the wallets of expat parents, with many worrying about how they can continue to afford to pay the costs.
Huge numbers of expat families try to inject some stability into their children’s lives by forking out for private school fees.
But as the costs have surged by nearly 25% in the past five years, according to a study by Lloyds Bank, more than a third of parents may have to pull their children out of their exclusive schools because of the strain on their finances.
The research found that 37% of parents may have to reconsider where their children are schooled, while 57% fear that they do not have the cash to pay for a private education if the fees keep rising.
Around one in four families are also struggling to meet the costs and are paying fees late, said the bank.
Money no object until fees increase
Most parents explained class sizes, school facilities and good teaching were the main reasons they opted for private schools – and dismissed worries about the cost.
But rising fees are forcing many to reconsider cheaper options at home and overseas – especially if children of expats have close ties with relatives still living in Britain.
Surprisingly, only 2% of parents considered fees when enrolling a child at a private school and almost 25% confessed they had no financial plan for funding school fees if their family or employer offered no cash help.
Sarah Deaves, investment advice and private client director at Lloyds Bank Private Banking, said: “The survey suggests that many families do not consider money of much importance when planning private schooling for their children.
Investing for private school fees
“This lack of planning is obviously contributing to financial problems that emerge sometimes years later as the cost of schooling increases. Now, many families may have to take their children out of private schooling simply because they forgot a basic lesson about budgeting.
“With inflation and economic issues inflicting more strain on family budgets, even relatively wealthy parents are finding the rising costs of private schooling an unexpected burden.
“A range of savings and investment strategies can help fund private school fees.”
Deaves suggests contacting an independent financial adviser as soon as the decision to send a child to private school is made, as starting saving early on makes funding the costs easier for parents.”
