The cost of kitting out the kids

Moving from primary to secondary school can be a very exciting time for a child, and, based on research from high street chain John Lewis, it can be an expensive time for parents.

textbooks

The retailer added up the cost of providing for a child’s first year at secondary school. They included new school uniform, books, stationery, technology such as phones and laptops and came to an average figure of £6,800 per child. This figure doesn’t include private tuition fees but does include other costs like lunch and end-of-year presents for teachers.

PLANNING AHEAD

  • With forward planning and good advice it is possible to accumulate a big enough savings pot to see your child or children through to graduation. When you’re looking to save a lump sum, it makes sense to do so as tax efficiently as possible.
  • Individual Savings Accounts (ISAs) are a good way of building up funds, especially as the amount you can save annually tax free (except unrecoverable 10% deducted from company dividends at source) is £15,240 for tax year 2015-16.
  • You can choose a Cash ISA, a Stocks &Shares ISA, or a combination up to the full allowance. If you have a few years before you need the money, and you’re happy to take on some risk, then a Stocks & Shares ISA might be the right choice for you.
  • In addition to your own ISA allowance, a child under 18 who doesn’t have a Child Trust Fund (CTF) is eligible for a tax-free Junior ISA (JISA). You can invest up to £4,080 for them in tax year 2015-16.Withdrawals can’t be made from a JISA, so they should be regarded as a longer term investment as the account can only be accessed by the child when they turn 18. Since last April it has been possible to switch an existing CTF into a JISA.

A good education can give your children the best start in life, so it makes sense to talk to us here at Logic Wealth Planning as early as possible about your family’s needs.