Tomorrow belongs to those who prepare today
We all want to give our children the best possible start in life and a good education is a top priority. This however has become a lot more costly than some people realise. The cost of putting just one child through school and university can easily run into tens of thousands of euro. If you have two or more children then you are going to have to dig even deeper to keep their education journey up and running. Starting now and contributing to a Savings Plan can help ensure the cost of your child’s future education is easier met when costs become higher.
Get to Grips with it Now
The cost of educating your child can be expensive irrespective of whether your child attends a public or private school. The problem is that many parents leave it too late to get to grips with the costs and end up having to fund everything out of day-to-day expenditure. Remember the mortgage and utility bills you pay today, may still have to be paid when your child starts school. The only difference is you will be expected to manage those household costs on top of your child’s education.
It all starts here. Your child’s first days at school is a big milestone. It is also the first day of many years of worthwhile expense for us parents ! The average cost of sending a child to primary school each year is €830. The total cost for one child in primary school over 8 years amounts to an estimated €6,640. (Source: Zurich Cost of Education Survey 2018)
The cost of education gets even higher as your child moves into secondary school. The average annual cost of education for a child entering first year is €1,495. This results in an estimated cost of €7,218 over the 6 years in secondary school. (Source: Zurich Cost of Education Survey 2018). If you are looking to send your child to a private school then you will have to cover these fees on top of all the other costs. Approximate tuition fees for Day pupils in Private schools range from €4,000 to €7,000 per annum. If they elect to board these fees will be higher.
Third Level Education Costs
College doesn’t come cheap and by the time a teenager reaches third level, parents often really feel the cost of putting their children through a university or college. To give your child the best start in their adult life you will need the finance to match their ambition. All “free-fees” third level institutions charge a mandatory student contribution of up to €3,000 per year for 2018/2019 (Source www.citizensinformation.ie). Unfortunately, this student contribution is just one of the costs likely to be incurred when putting your child through college. If they live away from home you will have the cost of rented accommodation of approximately €5,000 per annum plus the cost of living, transport etc, estimated at €3,000 per annum. In addition, all these Third Level Education Costs are on the rise.
What can you do about it?
It is clear to see that the cost of education is high and increases over the years. As a father of three I realise it makes sense for parents to plan ahead and build up your educational savings year on year.
For further information on the options you have, make contact with your Financial Adviser or me here at Peavoy Financial Planning. We will work through your future expenses and find ways for you to best achieve your savings goals. I can be contacted on 087-2902206 or alternatively by email on ei.l1553390151aicna1553390151nifyo1553390151vaep@1553390151divad1553390151
David Peavoy BA, QFA, LIAP is the Owner of Peavoy Financial Planning whose practice is based in Office 5b, Portlaoise Enterprise Centre, Clonminam Business Park, Portlaoise, Co Laois.
David Peavoy T/A Peavoy Financial Planning is regulated by the Central Bank of Ireland
Disclaimer: All data and information provided within this blog is for information purposes only. It should not be taken as specific advice for your situation. Peavoy Financial Planning makes no representations as to the accuracy, completeness, or suitability of any information and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its use