The annual ‘Cost of Education’ survey reveals that more families are now inclined to initiate a savings fund compared to the previous year.
- A Shift Towards Savings: The number of families planning for future savings has surged to 51%, a significant rise from 32% in 2022.
- Estimating Education Costs: Parents of secondary school students anticipate an annual cost of €2,531 for secondary education. On the other hand, they reported spending an average of €3,931 on tertiary education fees.
- Student Accommodation Costs: In 2022, the average yearly expense for student accommodation at the tertiary level stood at €10,077.
With the ongoing cost-of-living challenges, it’s heartening to see that savings rates are showing signs of recovery. This comes after the financial habits of many were affected by the COVID-19 pandemic and prolonged inflation.
A Closer Look at Savings Trends:
In a survey conducted recently by Zurich, it was found that 56% of Irish families have savings set aside, acting as a buffer against the rising cost of living. This is a slight increase from the 54% recorded in 2022.
The silver lining is that the intent to save is growing, reaching its highest since 2019. Before the pandemic, approximately 40% of families had dedicated funds for unforeseen expenses. This number had dipped to 32% in 2022 but has now rebounded to 51%.
Understanding the Impact on Education:
The survey offers valuable insights into the spending habits of parents, the factors influencing their savings, and their strategies for managing the costs of secondary and tertiary education for their children.
Cost of Living and Its Effects:
- 56% of parents have savings earmarked to alleviate the financial pressure of inflation, marking a 2% increase from 2022.
- A noteworthy 51% of parents express a higher likelihood of establishing a family savings fund to safeguard against potential inflation in the future, marking a 19% jump from the previous year.
- A significant 68% of tertiary level students currently reside at home, a 10% increase from 2022.
- Parents of tertiary students, on average, spent €3,931 on tertiary education fees this year.
- The average annual rent for student accommodation was €10,077, while other rented spaces averaged at €5,179 annually.
- Parents estimated secondary school education to cost around €3,581 in total.
- 28% of parents have sought loans to cover their children’s secondary education expenses.
Planning Ahead for Rising Education Costs:
Ensuring children receive quality education, from primary to tertiary levels, is paramount for all parents. With the escalating costs, it’s crucial for parents to begin early, steadily accumulating the necessary funds to support their child’s educational journey. Roban Financial recommends parents to consult with an impartial financial advisor to establish savings goals, budget effectively, and select the most suitable plan for their family’s needs.
Roban Financial offers a hassle-free process for regular savings. It’s a flexible solution which can be started from anywhere, especially beneficial in the current remote working environment.
Need More Information?
Contact us today to get started with a regular and flexible savings plan from as little as €100 per month.
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