A recent survey, which was commissioned by Laya life and conducted by Empathy Research, has shed light on the financial difficulties faced by a staggering number of Irish families.
The testimony of 1,000 Irish parents suggest that they are jeopordising their own financial security in order to ensure their child’s financial stability.
The research, which ascertained that the cost of raising a child from the cradle through to college is in excess of $105,321, focussed on parents’ attitude and approaches to their finances.
According to the figures, the biggest annual outlay for parents is childcare with families spending approximately €4,049.42 per year, a figure which represents 7% of the annual household income of those surveyed.
Second to this is the cost of third level education and college fees with parents asserting they spend in excess of €4,000 per annum on their older children’s education.
As a result of this expenditure, Irish parents admit they struggle to save, with approximately half revealing they have cancelled insurances in an attempt to cut back on family costs.
Despite supporting their children through college, less than 31% of parents have estimated the future costs of supporting their children until they are old enough to support themselves.
While the average age parents expect their children to demonstrate financial independence is 24, many assert they intend to help their child purchase their first home while 33% confirm they hope to offer financial support should their child marry and start a family of their own.
Commenting on the findings, well-known economist, Joseph Durkan, said: “It’s crystal clear from the research that Irish parents want to provide financial stability for their children, but they are still suffering from the effects of the recent economic downturn - ‘The Great Recession’. It’s the worst recession the world has experienced since the Great Depression of the 1930s, and the worst in Ireland since the 1950s.”
Elaborating, he says: “Many parents today have raised their children in exceptionally difficult financial circumstances and it’s clear from the research that savings and important financial protection such as life insurance have been put on the long finger or forgotten altogether as parents fight to survive financially.”
Urging parents to consider unforeseen events, the economists insist: “If they [parents] want to secure the future against ‘shocks’ such as the consequence of a premature death of a parent, they must have a savings strategy. Pension planning for retirement is an obvious example, but there are many other plans that parents should consider, such as insurance.”
This research, which was conducted in June of this year, was published today.
