There really is no such thing as starting saving too early for your child’s future. The earlier you begin the more interest you will accumulate. It’s an expensive feat putting your child through education so the sooner you start saving, the better.
Whether you want to save to put your child through private school or university, starting while they are still in nappies will give you and them the best head start!While for most mums in Ireland, private schools aren’t on the agenda, a “free” education in Ireland still costs money when you consider necessities such as uniforms, registration fees and school books.
A report published last year, for instance estimated the cost of educating a child from public primary school to third level to be a whopping €60,000.With the likelihood of university fees being reintroduced, parents may need to save substantially more for those expensive years. With this in mind, it’s important that you figure out how much you need to save and what options are available to you.
The first step towards saving for your child’s education is to estimate how much money you are likely to need. Consider the type of school they will be attending (public or private), the high likelihood that by the time your child attends school that fees will be reintroduced for third level, how long you have to save and inflation.If fees are reintroduced the cost of four years in University for students who live away from home will rise from an average of €32,500 to €60,000.
Starting early and consistency are key when it comes to saving for your child’s future. One way to begin saving is to start with child benefit, which is currently €130 a month for the first three children. Saving this amount every month from when your child is born and getting a return of 4% will net over €30,000 by the time college rolls round. Throwing in a lump sum here and there will also make a huge dent as will increasing the fund where possible when he gets older.