Research announced today [5th August 2010] by Bank of Ireland Life, in association with online parent resource Schooldays.ie, reveals that parents are currently feeling the financial pressure when it comes to putting their children through our education system.
Nearly half of all parents cited that this school year was one of the most difficult, with over two-thirds having to seek financial assistance from their family.
Bank of Ireland Life highlights the need for parents, now more than ever, to plan ahead to make sure they can fund the costs associated with educating their children. The company estimates that the current costs associated with educating a child to third level is almost €70,000.
Feedback from the parents surveyed supports this, with 78% of parents wishing that they had started saving for their children’s education much earlier. Three-quarters of parents believe that the best time to start saving for their children’s education is from the time they are born, using the monthly child benefit of €150, if possible.
Highlights from the research include:
With many parents already feeling the financial pressure in putting their child though school, 90% of parents feel the additional strain placed on them throughout the year from the school, with 60% of parents giving their children additional money for school supplies and fundraising events at least once a month.
Bank of Ireland Life has put together a breakdown of typical costs of educating your child through primary, secondary and third level education.
Expenditure | € Primary* | € Secondary* | €Third level** |
Study Books and Materials | 185 | 329 | 585 |
Uniform (Clothes for 3rd level), Sports gear and Shoes | 204 | 260 | 414 |
Lunch / Food | 387 | 419 | 1,620 |
Public Education Registration Fees / Voluntary Contribution | 147 | 184 | 1,982* |
Computer and Internet access (Average Laptop €499; Broadband Value Pack over nine months) | 198 | 198 | 198 + once off cost of laptop |
Transport | 394 | 448 | 837 |
Rent (outside of Dublin) | - | - | 2,709 |
Utility Bills (Electricity/Gas/Bins/Phone) | - | - | 513 |
Pocket Money (over nine months) | 176 | 514 | 1,480* |
Total Annually | 1,691 | 2,352 | 10,338 |
Years in Education | 8 | 6 | 4 |
Grand Total | 13,528 | 14,112 | 41,851 |
“Most parents agreed that the best time to start saving for their children's education is from day one. In fact, if the current child benefit of €150 a month was saved from birth to age 18 and put into our SmartChoice Education plan, parents could end up with a lump sum of over €43,000 to help towards the various costs associated with children's third level education.
"The issue of re-introducing fees for third level students has had little focus in recent months. However, it is always better to be prepared, especially since any policy decisions could be effected within just 12 months, leaving parents with little time to save. Putting plans in place now to help fund these very expensive third level education years is vital for parents and something we strongly recommend."
Annemarie Wade of Schooldays.ie observed that; “Our second hand books section is the busiest section on our website during the summer months. Thousands of second hand books have been added to the site by parents who are taking the opportunity to raise funds through the sale of their children’s old books to help fund the purchase of their books for the new school year. The new Schooldays.ie Shop allows parents to purchase new school books online is also proving popular as is the general Back-to-School section of the site which provides information and tips to parents on a wide range of issues.”
Projections are based on the policy value of a Bank of Ireland Life SmartChoice Education plan over the specified investment terms after the payment of taxation (currently 28%). Projections assume a growth rate of 6% per annum, which is not guaranteed, and no lump sum payment.
Examples of ways to Save for your Children's Education | Monthly Savings Amount | Term of Investment | Projected Fund value at end of term |
Save the monthly Child Benefit payment currently €150 | €150 | From birth for 18 years | €43,008 |
Save some of the Crèche Fee once they start primary school | €400* | Eight years at Primary School | €43,549 |
Projections are based on the policy value of a Bank of Ireland Life SmartChoice Education plan over the specified investment terms after the payment of taxation (currently 28%). Projections assume a growth rate of 6% per annum, which is not guaranteed.
Warning: These figures are estimates only. They are not a reliable guide to the future performance of this investment.
Schooldays.ie is Ireland's online resource for parents and teachers. Established in 2006, the website provides comprehensive information for parents on schools, parental resources, afterschool activities, mid-term camps and family milestones such as communions, confirmations, debs and birthdays. Parents can also source new and second-hand schools books through the website. Teachers can source information on school tours, roadshows, competitions and school year events.
SmartChoice Education is Bank of Ireland Life's most popular product solution for parents looking to save for their children's future.
SmartChoice Education is a regular savings plan linked to the stockmarket that includes an innovative 25% loyalty bonus for those who commit to saving regularly for a period of seven years. In the first year of the plan, Bank of Ireland Life invests an amount equal to 25% of the customer's initial annual contribution. Provided regular contributions are maintained for a period of seven years, the investment value of the bonus will be allocated on the seventh policy anniversary.
SmartChoice Education requires a minimum payment of €100 per month and has a wide range of investment funds for customers to choose from. SmartChoice Education has a minimum investment period of seven years.
Terms and conditions apply. Life Assurance tax applies. Fees and charges apply.
For further information contact:
Laura Erskine
Public Relations Manager
Bank of Ireland Life
Tel: 01 6172586
Mob: 086 856 2929
Anne Mathews
Media Relations Manager
Bank of Ireland
Tel: 353-76-623-4771
Mob: 087 246 0358
New Ireland Assurance Company plc trading as Bank of Ireland Life is regulated by the Financial Regulator and is a member of Bank of Ireland Group.
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