The new school term, which begins next week, marks the start of a thirteen-year spending spree for many Irish parents, or up to seventeen years if your child goes on to third level education.
The new school term, which begins next week, marks the start of a thirteen-year spending spree for many Irish parents, or up to seventeen years if your child goes on to third level education.
The average parent of a five year old has no idea what the eventual cost of their child’s education will be. New research* from Hibernian Life & Pensions reveals that this year’s school entrants, assuming they attend state schools and colleges only, will cost their parents €27,784 in uniforms, books and extra-curricular activities by the time they conclude full-time education in 2020. Allowing for annual inflation of 4% that is approximately €54,000 in today’s terms.
Other findings from Hibernian indicate that over a child’s primary and secondary school lifetime – totalling approximately thirteen years – parents will have to pay for over 20 school trips, 52 shirts or blouses, 39 pairs of trousers or skirts, 26 jumpers and 26 pairs of shoes. Parents of girls faced larger bills than those of boys as they spent more on books, trips and after-school activities. Costs increase when children enter secondary school, with increased costs of uniforms, sports kit and excursions.
It is third level education however, that really puts a dent in the family budget and if the government chooses to re-introduce fees the figure of €17,068 that it costs to put one child through college at present will only increase. Families with more than one child can double, or even treble that figure.
Ian Veitch, marketing and product development director at Hibernian said: “Unfortunately, many parents assume a free education means exactly that, however as our research shows the cost of sending a child to school and college can be a significant strain on a family’s budget, especially for families with two or more children. It is important for parents to allow for these costs when managing family finances. If parents do their school sums when their child first starts going to school and invest wisely it may not be such a financial drain later on.”
For example: Investing €154.21 per month in a Hibernian Spectrum Saver now, assuming an average of 6% growth per annum, will provide €35,000 in 2018, hopefully enough to put your five year old through college. Considering what most crèches charge in monthly fees it would make sense for parents to invest even a portion of this expenditure in a savings plan once their child starts primary school.
| MONTHLY PREMIUMS REQUIRED TO FUND €35,000 | ||
|---|---|---|
| Term of Hibernian Spectrum Saver plan | Monthly premium based on 6% growth and indexation | Monthly premium based on 6% growth and NO indexation |
| 10 year term | €201.70 | €250.58 |
| 15 year term | €110.29 | €154.21 |
| 18 year term | €81.58 | €122.34 |
- ENDS -
*Fieldwork for research undertaken by Hibernian Life & Pensions carried out during March 2003 by Behaviour & Attitudes. The total cost of putting a child through school/third level was calculated by the following method: parents were asked to give the total cost of educating a child at various stages of schooling and the cost and frequency of purchase of various school related items. N.B. Regarding third level, accommodation costs are not included, which can significantly add to the bills of some parents.
Press contact: Kela O’Riordan, 01 617 8164, 086 606 8842, kela.oriordan@hibernian.ie .
Notes to editors:
- Hibernian is part of the Aviva plc the fifth largest insurance group in Europe, and seventh globally (based on gross worldwide premia)
- Hibernian is Ireland’s largest composite insurer, ranked first for general insurance and top five for life and pensions
- A photograph is available by ISDN
- Hibernian news releases are also available on www.hibernian.ie