Private education is another subject that is fraught with political and philosophical opinion. Many pay private school fees with a heavy heart but feeling that it's necessary to avoid problems associated with large class sizes and a recruitment crisis in the teaching profession. Others feel that an education that is paid for will inevitably yield better results. Similarly, successive governments have given varying degrees of support to those progressing to higher education, the current regime favouring tuition that has to be paid for and a system of student loans to repay an accumulated debt.

One thing is agreed upon. The amount of money required to see a child through private or higher education is considerable and requires some planning. Parents, grandparents or guardians have a range of options, although the tax advantages of Educational Trusts are no longer available.

At the basic level, the education can be paid for from income at the time the fees are due. Depending on the age and circumstances of those paying the bills this may lead to a postponement of retirement or a compromise in standard of living. An alternative is to pre-fund all or part of the cost of the education by making single or regular investments.

The use of financial models is essential in this area and by combining known factors, such as current costs and affordability, and assumptions about fee inflation and investment growth, we can produce a plan to suit individual circumstances and requirements.

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