HOW TO FUND FEES FIVE FAMILY TIPS

Sarah Deaves, of Lloyds Bank, said parents can help save for school fees by considering five simple steps:

Plan ahead – “Try to start saving when your children are very young,” she said. “Make sure you can cover the fees long term, and take inflation into account.”

Save tax-free – “A financial adviser can help you to make the most of tax allowances – such as maximising your Isa allowance each year.”

Lump sums – “Some investment vehicles can give you a beneficial rate if you lock them in for a period of time, but it’s wise to check whether there is an element of capital protection and that you can make regular lump sum withdrawals when needed.”

Calculate your risk appetite – “Financial advisers can help you choose investments that make your money work harder but at a risk level you’re comfortable with. But remember, the value of investments, and the income from them, may fall as well as rise and cannot be guaranteed.”

Ask for family help – “The cost of fees is not just about parents – grandparents may also wish to contribute towards the cost. Tax exemptions and allowances such as the annual gift allowance may be worth considering.”