It’s that time of year again when parents very much feel the financial strain of the return to school and college. And whilst September is traditionally associated with hugh expense, it is a timely reminder that to save all year around for the costs of education is not only admirable – it is essential!
We often blog about the importance of savings for children’s education, particularly with the increase in 3rd level education. As Financial Advisors, we would not be doing our job if we failed to highlight this necessary aspect of financial planning for any family.
The Dublin Institute of Technology prepare a Guide every year for students to inform them of the cost of their third level education.
The Cost of Living Guide 2018/2019 put the expected annual cost for a student living away from home at €11,829.00.
That’s the annual cost – multiply that by 4 years (a typical Degree programme) and that equates to €47,316. . If you have 2 children to put through college that totals €94,632.00! Or 3 children would equate to €141,948.00. These figures are based on average college fees applicable presently and these may change in the future.
Quite a startling figure and one which we really have to pay heed to if our ambition is to afford our children a third level education.
So what can we do? The best advice is to start an Education Saver and as early as it is affordable to you. The early years can be expensive particularly with full time child care to pay for if both parents work away from home. But we would urge anyone with young children to save as much as they can from as early on as they can. There are many different savings options. As it is a long term savings plan, we would recommend a diversified approach with a mix of equities, bonds and deposits. Over the long term equities have been proven to outperform deposits.
If you wish to discuss an Education Saver for your children, contact us today at 053 9233640.