Saving for Children’s Education in the UK: A Detailed Guide

As parents, planning for your child’s education can never start too early. Whether it’s saving for their primary education, funding private secondary school, or preparing for university fees, setting aside funds for your child’s education is paramount. This blog outlines some practical tips to help you navigate the process of saving efficiently for your child’s educational future without compromising on other financial priorities.

Understanding the Costs

First and foremost, it’s important to have a clear understanding of the potential costs involved. Education costs can vary greatly depending on the type of schooling (public or private), location, and the level of education. As of 2025, university tuition fees in the UK can be as high as £9,250 per year for home students, and significantly higher for international students. Additionally, boarding fees at private schools can be substantial, alongside other expenses such as uniforms, trips, and extracurricular activities.

Start Early

The earlier you start saving, the more time your money has to grow. Even small amounts saved regularly can add up over time thanks to compound interest. Opening a Junior ISA (JISA) is a popular choice among parents. JISAs are tax-free savings accounts that allow you to save up to £9,000 (as of 2025) every year, which cannot be accessed until your child turns 18, ensuring the funds are used for their intended purpose such as education.

Explore Scholarships and Grants

Do not overlook potential scholarships and grants that can help offset education costs. Many educational institutions offer merit-based, sports-based, or arts-based scholarships. Additionally, organisations such as the Government’s 16-19 Bursary Fund assist with educational costs for students aged between 16 and 19.

Consider Setting Up a Trust

A trust can be a viable mechanism to manage, protect, and control funding for your child’s education. Setting up an educational trust helps in earmarking funds specifically for education and can also provide tax efficiencies. Consult with a legal professional specializing in trust and estate planning to explore this option further.

Make Use of Savings Platforms

Utilizing dedicated savings platforms and apps can also help in diligently saving towards your child’s education. Services like Moneybox allow you to round up purchases and save the change, which can then be allocated to various saving goals, including a child’s education fund.

Regularly Review and Adjust Your Savings Plan

The cost of education is not static and will likely increase over time due to inflation and other factors. It is important to review your savings plan annually to ensure it still meets your financial goals and adjust your contributions as necessary. This might mean increasing your monthly savings amount or shifting some funds to higher yield accounts as your financial situation evolves.

Engage Your Children in Saving

As your children grow older, involve them in the saving process to teach them valuable lessons about money and saving. This can be achieved by encouraging them to save a portion of their pocket money for educational purposes or rewarding them for academic achievements by contributions to their savings.

Saving for your child’s education requires thoughtful planning and disciplined saving. By starting early, utilizing the right financial tools, and educating yourself about the costs and avenues for financial aid, you can effectively pave the way for your child’s educational journey. Remember, the best investment you can make is in your child’s future.