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Question: Our daughter is 15 and getting ready to sit her Junior Cert. We’re lucky that she’s a hard worker and is already thinking about her future aspirations. Teaching is top of her list, making third-level study a likely path for her.
As regards saving for college, we’re not totally starting from scratch – we’ve set some money aside, but we’re concerned it won’t be enough to cover today’s college costs.
What are our best options at this stage to boost our savings and make sure she can pursue third-level education, if that’s what she decides to do?
Answer: As parents, it’s natural to want the best for our kids, especially when it comes to their education. It’s also natural to worry about the financial implications of higher education because, let’s face it, the cost of college these days can be pretty overwhelming for families.
Before delving into savings strategies, it’s crucial to grasp the extent of the college expenses that may lie ahead.
While exact figures may vary depending on the institution and chosen course, the main expenses are typically tuition fees, accommodation costs, textbooks and living expenses.
Research suggests that the overall average cost of attending a university in Ireland can range from €25,844 (if your child lives at home) to €66,152 (if they live in student accommodation). The geographical location of the college will have an impact as well.
Accommodation expenses in Dublin can rise to around €10,800 per year, while in Cork, the figure is €8,000. In Limerick and Galway, it can reach up to €7,000 and €6,800 annually respectively.
Location, Location
Accommodation expenses can make up a significant portion of a student’s overall college costs. When evaluating options for your daughter, take the following factors into account:
1. Living at home: If your daughter attends a local college or university, living at home can substantially reduce expenses. Assess the feasibility of commuting options and discuss the advantages of staying at home.
2. Rented accommodation: In situations where living away from home is necessary, explore the rental market near the college campus.
Research affordable housing options, including shared accommodation with fellow students or purpose-built student residences,
Financial aid and scholarships
Encourage your daughter to explore any available financial aid opportunities and scholarships.
In Ireland, one such programme that can significantly aid in funding third-level education is the Student Universal Support Ireland (SUSI) grant.
The SUSI grant provides financial assistance to eligible students to help cover the cost of their college fees and living expenses. Outside of fees, a maintenance grant of up to €7,586 is available to support students with the cost of living.
This grant is means-tested, meaning it considers the financial circumstances of the student’s family when determining eligibility.
Keep in mind, it’s always good to start planning for the future, and every step you take helps your child have an enjoyable academic experience
One of the main determining factors is household income. As of the current guidelines, the income threshold varies depending on family size, with higher allowances for larger families.
Farmers should look at their structure to see if any planning opportunities exist to maximise access to SUSI supports. There may also be other scholarships, bursaries, or financial aid programmes.
Assess your financial resources
The next step is to conduct a thorough assessment of the family’s current financial standing.
Make a list of any savings earmarked for your daughter’s education, including long-term investments, savings accounts, or other assets. In addition, take the time to scrutinise your household budget to determine a realistic figure that you can put towards her college expenses.
Short-term savings options
Let’s explore two popular savings avenues: deposit accounts and credit union accounts.
1. Deposit accounts: Traditional bank deposit accounts offer a secure and relatively low-risk option for saving towards your daughter’s education.
Consider opening a high-interest savings or term deposit account to earn competitive interest rates, while maintaining access to your savings. These include the ‘fixed term deposit accounts’ from all major banks.
2. Credit union accounts: Credit unions offer community-based alternatives to traditional banks, often providing attractive savings products tailored to educational goals.
Investigate options at your local credit union, such as education savings accounts or special savings schemes.
Automate your savings
Whichever savings option you choose, set up automatic transfers from your primary bank account to your designated college savings account on a regular basis.
This disciplined approach will ensure consistent contributions, without the need for ongoing effort on your behalf.
Navigating the financial details of your daughter’s college education may seem daunting right now, but with careful planning and consideration, you can give her the support she needs to pursue her academic dreams.
By exploring savings options, maximising savings efficiency, carefully weighing accommodation options, and seeking out financial aid, you can take proactive steps to mitigate the impact of college costs.
Keep in mind, it’s always good to start planning for the future, and every step you take helps your child have an enjoyable academic experience.
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