Parents make cutbacks to fund children’s private school fees

Amid escalating costs for private education, a survey carried out by JPMorgan Asset Management (JPMAM), the leading provider of investment trusts, has revealed the significant cutbacks parents make to their daily lives in order to afford private schooling for their children.

For many parents, it seems once they have enrolled their child into private education they then struggle to meet this financial commitment especially as 58% admit that private education costs take up 10% or more of their household income. As a result of the financial strain of private education, more than half (52%) of parents say they sacrifice holidays to help cover the costs of their child’s private education. The survey showed that the sacrifices don’t stop there, with nearly a third (31%) of parents admitting they have cut back or ditched their hobbies and 30% saying they cut back on the amount they spend on their car so they can afford to send their child to a private school.

These significant spending cutbacks are hardly surprising when you consider that for over a quarter (29%) of parents, the average cost of sending their child to private school is a fifth or more of their household income. Furthermore, a massive 76% of parents say they do not receive any financial assistance in the form of a grant, bursary or scholarship to help fund the school fees.

James Saunders Watson, head of sales and marketing for investment trusts at JPMAM said: “While many parents may think sending their child to private school is the preserve of the privileged, our research shows that more than half of parents took this decision because they felt it was the only viable option for their child due to a lack of sufficient state schools in their neighbourhood. In doing this they are committing a large chunk of their finances to schooling and are meeting these with dramatic lifestyle changes, many of which are impacting on how they spend their free time.”

The research reveals the various reasons parents send their children to private school including a number of parents (7%) who choose to send their child to private school because they want them to experience life away from the family home– a move which may help them to master independence and fast-track their social skills.

Main reasons for sending children to private school

They receive a better education 81%
It sets them up for the future 80%
Poor choice of state schools in the area 54%
Because you can afford to 53%
It gives them a better choice of University 48%
Because it is family tradition 28%
The only good state school in the area was oversubscribed / or they couldn’t get in 20%
They got a scholarship 17%
Wanted to send child to boarding school / Let them live away from home 7%

Saunders Watson concluded: “Our message is simple - saving regularly for your child’s private education will help to alleviate the strains on your finances at certain times of the year. Life can be made easier and sacrifices can be avoided. JPMorgan Asset Management manages a range of investment trusts which provide parents with a wide selection of strategies through which they can invest for their child’s future. For as little as £50 a month – or less than the cost of a cup of coffee a day - parents can regularly save into one of JPMAM’s investment trusts. With the choice of 19 trusts, investors can choose an investment trust that fits into his/her investment portfolio and risk parameters.”