It’s never too soon to start an education fund for your child

It's never too soon to start an education fund for your child

In less than two weeks, the first offers from CAO will be out with your child looking forward to starting the next phase of their lives with the start of college life. For some parents it is a stressful time worrying how they are going to fund the cost. The present cost of third level education per annum for a child living away from home is approx €11,000 (source DIT Student cost of living 2015/16).


ExpenseMonthlyCollege Year
Student Fee€333€3,000
Rent (outside Dublin)*€325€2,925
Books and class materials€74€666
Social life/miscellaneous€74€666

*Dublin rent average €418 brings total cost of study there to €11,838. Source: DIT Campus Life.

For those who have not put funds away the prospect of getting additional work or borrowing is the only option open to them as everyone wants their child to get a good education.

For those with young children, now is the time to start preparing for this cost. In fact the earlier you start the better giving yourself a chance of covering the costs.

If you were to put away the current children’s allowance of €140 monthly Into a savings plan for 18 years assuming a growth rate of 3.3% you would have a fund of 42k, saving €140 per month for 12 years would yield 25k while saving for 5 years would yield over 9k.

While 42k sounds a lot in 18 years remember that college fees may be back at that stage and the cost of living will be higher, so my advice is to save whatever you can and you will look forward with your child to this exciting stage of their lives. The other advantage of starting early is you can afford to take more risk with the investment which normally leads to better returns.

One last piece of advice, put the policy in the name of the parents as if you put it in the child’s name they are legally entitled to the proceeds at 18, which may not be an ideal scenario. By having the plan in the parents name it allows you to control how the money is used. If your child does not decide to go to college you have a nest egg built up to use as you want or give to them at an appropriate time.

For further information and advice call me today on 064 663 6410 and I can meet you to go through the plan that may suit you best.

Vincent Casey Life and Pensions Co
8, Newmarket Lane, Killarney, Co. Kerry | Office: 064 663 6410 | Mobile: 087 246 1599

Vincent Casey Life & Pensions Co. Limited is regulated by the Central Bank of Ireland.