Now more than ever, children will need a college education and recognised degree qualification for the best change of securing a bright, successful and secure future. However, funding a third level education is becoming increasingly difficult, and according to the Zurich Cost of Education Survey 2018 most parents underestimate the cost of sending a child to college.
The Zurich study found that the biggest jumps in spending were on student accommodation (increased from €2,628 in 2017 to €3,442) and private rented accommodation where third level students can expect to pay between €3000 and €4000 each year.
The average cost of third level fees also rose significantly from €2,066 to €2,419 per year while the number of college students shelling out more than €900 per year on transport costs nearly doubled in 2018.
Perhaps not surprisingly, the cost of third level education can creep up on parents with 52% going into debt to cover the cost of their child’s college expenses. That’s why planning for your child’s education and starting a savings plan early is so important, not only to give your child the best chance starting out in life, but to help you keep your own financial and lifestyle goals on track.
You might be surprised to learn that regular savings can perform better in the long run than a lump sum investment, even in volatile markets. Regular investing (on a monthly basis) takes advantage of both up and down markets.
That means that when markets are strong, portfolio returns will be higher, and when markets fall, more units will be purchased for the same investment which leads to greater returns in the long run. The key is to give your investment time to grow. To learn more about saving for your children’s college education get in touch with the team at Focus Life & Pensions; we can help you prepare for the future and achieve the goals you have for your family on a plan that suits your circumstances. Contact us on 0868210987 to get started.