John McColgan and Shona Chambers
Most parents know that education is key to giving their child a good start in life. In particular, a third-level education can have enormous benefits.
Even in today’s economy, those with a third level qualification find higher quality jobs and are significantly less likely to be unemployed.
by Shona Chambers
Whatever your child’s career goals turn out to be, it would be nice to know that money won’t be an obstacle to their success. However, even when the state pays the cost of tuition fees, we all know how the bills can still add up.
If you have young children, you need to start saving for their education as early as possible. This will let you spread educational costs over a longer time period, and may also give you the option to invest in ways that have higher growth potential. Even if your children are older, the saying “better late than never” still holds true.
All things told, secondary education costs around €2,250 per year on average. At third level, annual costs can go up to €6,000 if your child remains at home, or €11,000 if your child moves away from home. That means that, at current rates, it could potentially cost over €55,000 to put one child through secondary and third level education.
Given the ever changing public finances and withdrawal and reduction of certain supports, parents have legitimate reason to worry that the cost of education in the future will be even higher. It is also highly likely that the government will reintroduce third-level fees at some point over the coming years. Parents may also face even higher registration fees, as well as more stringent means testing for educational grants.
The sobering reality is that half of all Irish parents are not saving for their children’s education at all, and many others are not saving enough. Two-thirds of parents expect that they will have to borrow in the future to meet the costs of college. They will face a difficult struggle if they wish to put multiple children through third level and then pay back those loans at a time when they are approaching retirement themselves.
Insurances Companies such as Irish Life, Zurich Life and New Ireland offer unit linked savings plans where you can save a regular monthly amount to plan for these expenses.
There are many savings and investment options available and an independent financial advisor like me can advise you on the most suitable option.
Think about the consequences if you don’t do anything!
Do you want to be in the position where you don’t have the money to pay for your child’s education?
Shona Chambers BA QFA RPA is a Qualified Financial Advisor with John McColgan Financial Services Ltd.
You can contact Shona by telephone or email on 074) 9124366/shona@mccolganfinancial.ie
Tags: