Sep 18 2007
Parents are using their savings to pay for their child's private education, new research has suggested.
A study carried out on behalf of JPMorgan Asset Management found that 18 per cent of parents make cutbacks to their own pension payments in order to fund private education for a child.
Meanwhile, the study found that around one in 12 (eight per cent) of parents have set up a savings account specifically for the education of their offspring - something that could help to cover the costs of private school fees.
Commenting on the findings, James Saunders Watson from the firm said: "By organising investments for the long term into a specific investment trust, parents can have the peace of mind that their money is in a safe place for the specific purpose of paying for a child's private education."
He added that other family members would also be able to make contributions to such a trust to help give a boost to savings for a child's education.
In related news, a new study by mtmconsulting has found the cost of a private education to have increased by 39 per cent between 2001 and 2006, whereas the average wage increase was 18 per cent - something that highlights the benefits of long-term savings plans for education.
