Study shows determination of parents to educate kids

As thousands of students across Ireland received their Leaving Certificate results last week, a new study has revealed the financial pressures felt by parents.

The annual Cost of Education study from Zurich Life based on insights from 1,900 respondents and conducted by iReach, highlighted the strategies and determination of parents across the country in securing their children's educational futures, from primary school through to third level.

Some of the key findings of the study include:

·60% of parents say inflation has increased the financial strain of funding their children's education

· Parents underestimate secondary education costs by about €800, estimating €2,281 per annum compared to the calculated cost of €3,090 per annum

·For third-level education, parents estimate the overall cost at €9,511 per annum (up €2,399 from 2023). However, for those students in rented accommodation the actual calculated cost was €16,100 per annum and for students who live at home during third level, the calculated cost was €6,033 per annum

·Despite the costs involved, 90% of parents aspire for their children to pursue third-level education

·40% of parents are already saving for their child's future third level education

Commenting on the findings, Jonathan Daly, Head of Life Retail Distribution and Propositions at Zurich Life Assurance plc said: "It is important that parents take early proactive steps for their children's future education.

“By thinking ahead, parents can effectively fund for and manage education costs before they escalate into significant financial burdens.”

He continued: “Despite the challenges of the high cost of living and education costs, parents are steadfast in their commitment to providing quality education for their children.

“Many parents still express concerns about the escalating costs associated with aspects such as travel, grinds, and schoolbooks."

The research found that high accommodation costs at third level mean most students (64%) live at home.

The survey also found average third-level fees decreased to €3,152, down €779 from 2023, offering some relief for parents, albeit this is a temporary reduction arising from the €1,000 euro cut in third level fees which applies in 2024 only.

However, average annual student accommodation costs remain substantial at €5,034, while rented accommodation averages €10,067 annually.

These figures highlight the ongoing financial challenges students and their families face, Zurich Life has said.

The research also found that:

·81% of parents with children in third-level education view these costs as a financial burden with 54% incurring debt to cover them

·65% of secondary school parents and 48% of primary school parents see education costs as a financial burden

·38% of secondary school parents and 29% of primary school parents incur debt over education costs

·The average debt taken on by parents, to cover education costs, of third-level students is €1,356, for secondary school parents the figure is €624, and for primary school parents it's €474

·Fewer than 1 in 3 (29%) of parents with a savings plan think their savings will be enough for their child’s future college education

Parents can use Zurich’s Cost of College and Secondary School Calculators to work out the estimated costs of sending their children to third level and secondary school and to see how much they might need to save each month to meet these costs.