According to a recent survey by BOI it costs nearly €70,000 to educate a child in Ireland.
This is a significant sum considering the fact we are supposed to have a free education system! The reports highlights that 30% of parents are currently saving some or all of the child benefit (up 5% on 2009), with 41% of parents opting to do this with a regular savings investment plan. The good news is the costs are very much skewed towards third level when children may be able to contribute to these costs from part-time and summer jobs. The cost as per the report for primary and secondary education is circa €28k.
For illustrative purposes we estimated that if a parent saved 50% of the current children’s allowance (i.e. €75) the amount would be worth circa €30k at age 18 which would cover the cost the primary and secondary education (based on 5% growth rate and savings increasing at 3% per annum).
The above highlights the importance of regular saving to provide for a child’s education costs.
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