You can take out another policy when the child is two, and so on. By paying the fees for the whole year rather than each term, many schools will give you a discount, known as a composition. Another alternative is a Friendly Society Bond, which allows you to invest 25 a month for each child and grows entirely free of all tax. Anyone thinking of paying for private education should contact an independent financial adviser who specializes in this. Get the views of more than one before you embark on long-term savings and make sure your savings plans are as flexible as possible since your circumstances may change over the next 20 years.
Many people have to borrow to pay for some or all of the fees.
Nowadays there are easy and fairly cheap ways to do that with a loan secured on your home. Flexible mortgages mean that you can borrow extra cash at the mortgage rate. If you are able to pay fees out of your income, you may also want to arrange a flexible mortgage to help with cash flow. With a mixture of early judicious investment and careful borrowing, many people can afford to pay for their children's education. Only you can judge if the cost is worthwhile.