Paying for your child to go to private school is a major financial commitment and will take some planning - whatever your income.

With private school fees averaging over £12,000 a year and fees of more than £24,000 a year for boarding school, the tough economic times of the last two years has seen an increasing number of parents struggling to afford them. Even before the recession, finding around £1,000 a month was a tall order. If you want your child to go to private school, it's important to start saving as early as you can - even if you can only save a modest amount. Leaving it to the last minute will reduce your options and mean it's a real financial squeeze.

When to start saving
Experts always say that the earlier you can start planning for school fees, the better. But you may find it hard enough to make ends meet while you’re on maternity leave (yes, you do need to start thinking about school fees that early!) or working fewer hours, never mind having money to spare that you can save.

• Be realistic about what you can afford and make sure that any plans you make are flexible enough if circumstances change.

• Work out in advance how much you think you'll need so you can draw up a savings and/or investment plan.

SAVVY TIP: If you're worried about being able to save regularly, put the money into a regular savings account (or a tax-free cash ISA) while you get used to saving that amount. You don't have to make a decision immediately about what to do with it - just make sure you don't ignore your money for months or years on end when there may be better options.

• There’s information about private schools and fees at the Independent Schools Council.

Use your allowances
Make full use of all of your tax allowances, such as your personal allowance, which is the amount you’re allowed to earn or receive in income in any one tax year before you have to pay tax.

• You can earn up to £6,475 a year before you pay any tax, so if you're not working or you're only working a few hours a week, you won't won't have to pay tax on interest from savings as long as your income (including any interest you receive) is below the the £6,475 threshold.

SAVVY TIP: Money in ordinary savings accounts pay interest with the tax taken off, so if you're not a taxpayer, you can fill in a form (called R85) so that interest is paid without the tax having been deducted.

• Some married couples transfer assets (such as money in a savings account) to the person who doesn't pay tax or who is on the lowest tax band to maximise the tax efficiency of their savings.

• Use your individual savings accounts - or ISA - allowance. Currently you can save up to £5,100 a year into a cash ISA.

• You don't have to use complicated financial products to save for school costs, what's important is that you earmark it early on.

Keep some money in cash
Make sure you can pay the first few years of school fees without having to cash in longer term investments. It may be that you end up putting most of your money in savings accounts and only investing for the last few years worth of school fees.

SAVVY TIP: Don’t forget to spread your money around between different banks and building societies if you're in danger of keeping more than £50,000 in any one bank or building society. Because a number of banks and building societies have merged or been taken over, the rules on how your savings are protected are complicated. Check that you’ll still be covered by the Financial Services Compensation Scheme. There’s more about Keeping your bank saving safe in the section called 'Growing Your Money'.

Invest for the longer term
Don't take on more risk than you can afford (this is something you should discuss with an independent financial adviser - one who can explain the risks associated with various investments in language that makes sense to you). If you have to cash in your investments when the stock market is at a low, you could find you have a hole in your school fees savings.

• If you can leave your money invested for at least ten years, think about putting some money into a share-based investment such as stocks and shares ISAs. You can pay up to £10,200 into a stocks and shares ISA this year, minus anything you may have contributed to a cash ISA. It's generally less risky if you drip feed money into these investments every month rather than pay in a lump sum.

SAVVY TIP: Take advice from an independent financial adviser unless you're completely confident about picking your own investments. There's information about Using a financial adviser in the section called 'Growing Your Money'.

Use your mortgage
The increasing popularity of flexible mortgages, which let you overpay and underpay on your mortgage and take payment holidays, mean you can overpay loans whilst interest rates are low – when you may have money to spare – and borrow it back later.

SAVVY TIP: The theory behind this is good, but it only works if property prices are stable or rise. If they plummet, you may find your mortgage lender gets twitchy about letting you borrow money back if it will take you over a 90% loan to value level.

• It’s a good idea to take out a life insurance policy to make sure that school fees would still be paid if you or your partner were to die. There are other issues to think about, such as what would happen if you or your partner couldn’t work because of illness.

SAVVY HELP: Karen Ritchie is one of SavvyWoman’s panel of experts. Why not ask Karen a question about saving for school fees by clicking here?