School Fees Without the Shock: Funding an International Education as an Expat

Most expats will tell you that rent is their biggest expense abroad. But for families with kids in private or international schools, something else tops the list.

School fees are often the biggest budget item. They can cost more than housing, more than healthcare, and usually more than most people expect.

Even though it is a major expense, planning for school fees can be straightforward if you approach it the right way. Let’s look at the real numbers, common mistakes expat families make, and how to save for fees without risking your other goals.

The real scale of the cost

The headline figures are sobering, and they compound.

In the UAE, international school fees vary widely. They start at about AED 5,000 a year for a community school and can reach AED 120,000 or more for a top British or IB senior school.

For tuition alone, a mid-range British school costs about AED 48,000, while a premium British curriculum school in Dubai charges around AED 95,000. Add common extras like transport, exam fees, and private tutoring (which about 80% of families use), and the total can reach AED 136,000 a year for one child.

In the UK, things changed quickly in January 2025 when a 20% VAT was added to private school fees. This major change pushed fees up by about 10 to 20% overnight (some schools absorbed part of it), on top of the usual 3 to 5% yearly increases.

For a child who boards from prep school until age 18, the total cost can now reach £700,000 or more. Day schools cost less, but still add up to a six-figure sum over the years.

For many families, university costs come on top of all these school fees.

Many people overlook how fees increase over time. For example, a UAE school charging AED 50,000 today, with fees rising 3% each year, will cost about AED 71,000 by a child’s final year. Planning based on today’s fees may not be enough.

For perspective, one child at a mid-range Dubai British school, starting at about AED 48,000 today and rising 3% each year, would cost around AED 750,000 over 13 years.

At a premium school with all the extras, the total can easily go over AED 2 million. For two children, you can roughly double that amount, and university costs come on top. These are the numbers you need for honest planning.

Why expat families get caught out

Besides the costs, there are some common traps that expats face:

The headline fee isn't the total

Many ‘hidden’ costs can surprise expat parents. Transport, exam fees, building levies, uniforms, trips, and tutoring can add AED 20,000–60,000 a year on top of tuition in the UAE. Make your budget based on the total cost, not just the advertised fees.

Currency

If you earn in dirhams but pay UK boarding fees in pounds, the exchange rate can change the real cost of each term's bill.

A commitment that seems affordable now can become expensive if the pound gets stronger. It's important to understand and manage this risk. For more details, see our articles on moving money and managing currency exposure.

The university fee-status trap

This often surprises people. A British child living abroad may not automatically qualify for 'home' (UK) tuition fees at a UK university.

Home-fee status usually depends on living in the UK for a certain period before the course starts. If you get it wrong, your child could be charged international fees, which are much higher. If your child might go to a UK university, check the residence rules early.

Lifestyle creep and no ring-fence

Since fees are paid each term from regular income, many families never set aside a dedicated fund. They just pay as they go, which works until something changes, like a new job, a move, or a currency shift. Money that isn't set aside often gets spent elsewhere.

How to build a fees pot

The good news is that international school fees are one of the easiest costs to plan for, since you usually know years in advance when they will be due.

Here are some key tips to help you plan:

• Start early and keep the money separate: A dedicated fund, separate from your daily spending, is the best way to avoid overspending and having to find large amounts quickly.

• Match your plan to your timeline: If fees are years away, investing for growth can help your fund keep up with rising costs. If fees are due soon, focus on safety. The right mix depends on when you need to pay.

• Plan for future fees, not just today's: Include a realistic fee increase (3–5% is a good range) so you save enough. The projector above helps with this.

• Take advantage of discounts: Sibling discounts (often 10% for a second child or more for others), paying a year in advance for a small discount, and scholarships or bursaries can all lower your costs. Always ask about these options.

• Let the numbers guide your choice: With VAT changing UK costs, comparing UK boarding to staying at an international school abroad is now a real financial decision, not just a lifestyle choice.

Time is your biggest advantage. Spreading an AED 750,000 goal over fifteen years is much easier each month than saving it in five. Starting early not only builds a bigger fund, but also makes each month's saving smaller and gives your investments more time to grow.

Where you keep your savings should match your timeline. Money you need within a year or two should be in a secure, accessible place, while savings for fees a decade away can usually be invested for growth to keep up with fee inflation.

The right structure depends on your situation and where you will be when the bills are due. This is another reason to plan carefully, rather than pay from your income and hope for the best.

Don't fund school by sacrificing your retirement

Finding the right balance is crucial, and this is where many families struggle.

When you want the best for your children, it can be tempting to spend everything on school fees and forget about saving for the future. But keep in mind an old planning principle: your children can borrow for their education, but you cannot borrow for your retirement.

This does not mean school fees are less important. It means you should plan for them alongside your pension and long-term savings, not instead of them.

If you pay for years of school fees but do not save enough for your own retirement, you are only delaying the problem. If you are trying to decide between the two, our guide on how much you need to retire abroad can help.

Plan it, don't dread it

School fees can feel overwhelming because they are big, last for years, and often come with a lot of emotion. The good news is that they are predictable, so if you start early and plan honestly, they can be one of the easiest major expenses to manage.

Figure out the total cost, include inflation, set aside the money, watch for currency changes, and make sure your plan fits your overall finances.

If you want help creating a school fees plan that fits with your other goals, including currency, timelines, and retirement, talk to Holborn Assets.