College savings

clones1980

Hi everyone.
How much is everyone putting away yearly towards their child's college fees. My son is turning 8 soon and I am thinking better late than never that I start putting away the child benefit monthly. I do save weekly for other things hols, work on the house etc but I want to save specifically for college. I know its like how long is a piece of string but in ten years time when he's college age how much realistically will it cost to put him through college.

jlm29

My OH and I were talking about this yesterday. He had been listening to something about it on the radio, where they said that at a minimum you ideally would be saving the child benefit from birth.
I might sell one of my kids to fund education for the rest of them.

Midnight_EG

Since the day my Son was born (May 2018) I've put a tenner a week away for him for when he gets to college age. Anytime I've lent money, and it's a nominal amount, then I just ask they pay it back into the same account that I save for him. So far he has €900 and when the time comes he can have it used on Education, a holiday or investment or whatever within reason. I figure that over 17/18 years it's a guaranteed minimum of 10k so it should go far.

RiseToMe

Since the kids were born we've saved the child benefit foe them and then any cash they get. Without considering interest they should each have about 35k when they turn 18.

detoxkid

We save the child benefit but colleagues who have older kids in college say it barely covers what you need. Our kids are young though and our childcare costs are very expensive so I figure I'll start also saving the amount we currently spend on their childcare when (if?!) That cost goes away

Masala

Midnight_EG wrote: »

Since the day my Son was born (May 2018) I've put a tenner a week away for him for when he gets to college age. Anytime I've lent money, and it's a nominal amount, then I just ask they pay it back into the same account that I save for him. So far he has €900 and when the time comes he can have it used on Education, a holiday or investment or whatever within reason. I figure that over 17/18 years it's a guaranteed minimum of 10k so it should go far.

The problem is that you would need €10k per year of college. College courses now gone out to 4 years as minimum so you have a bit to go. The €10k is mainly year 1 and in subsequent you might come back to €8k per year especially for a boy who doesn't mind sharing a house with 7-8 lads etc. I would suggest keeping the Child Allowance separate and possibly putting it away in the Post Office in one of their guaranteed schemes

Masala

RiseToMe wrote: »

Since the kids were born we've saved the child benefit foe them and then any cash they get. Without considering interest they should each have about 35k when they turn 18.

My advice exactly!! Well done

jlm29

detoxkid wrote: »

We save the child benefit but colleagues who have older kids in college say it barely covers what you need. Our kids are young though and our childcare costs are very expensive so I figure I'll start also saving the amount we currently spend on their childcare when (if?!) That cost goes away

Same as. I’ve also dipped into the account with the child benefit savings a good bit the last few years because Weve had a lot of extra expense, on top of a couple of mat leaves close together. Once I get back to work after this one I’ll be knuckling down to build up the fund again.

RiseToMe

detoxkid wrote: »

We save the child benefit but colleagues who have older kids in college say it barely covers what you need. Our kids are young though and our childcare costs are very expensive so I figure I'll start also saving the amount we currently spend on their childcare when (if?!) That cost goes away

I think it probably depends on your expectation of what it will cover. We're in the fortune position that if they go to college in Dublin, they'll have a place of their own rent free. But yes if you are lumping in accommodation costs that will mount up.

Otherwise it will more than cover the yearly fees and still leave them with about 200 quid a week during their academic year

pwurple

Hard to know isn't it. We live near a uni, so if they go to college, will insist that it is here, not paying for accomodation.

I have put aside some savings for it at the moment (eldest is 8), but now thinking it might make more sense for us to chuck that and the monthly savings into overpayment on mortgage and be mortgage free before college instead...

Savings interest rates are so grim, feels like inflation will eat the savings.

Anne_cordelia

pwurple wrote: »

I have put aside some savings for it at the moment (eldest is 8), but now thinking it might make more sense for us to chuck that and the monthly savings into overpayment on mortgage and be mortgage free before college instead...

Savings interest rates are so grim, feels like inflation will eat the savings.

Yup completely agree with this. We aren’t saving for college but will be mortgage free.

listermint

I'm a bit confused here.


I do understand the cost of college.


But we aren't living in the States folks. Theres the entrance fees and then peripherals. I'd expect my kids to be part time jobs too to like I did to pay for their social activities.


People on here seem to be clocking up tens of thousands .???

Sinus pain

RiseToMe wrote: »

I think it probably depends on your expectation of what it will cover. We're in the fortune position that if they go to college in Dublin, they'll have a place of their own rent free. But yes if you are lumping in accommodation costs that will mount up.

Otherwise it will more than cover the yearly fees and still leave them with about 200 quid a week during their academic year

You are very generous. I pay college fees and we are in Dublin so no rent- but I expect them to pay for their own bits and bobs and social life from a part time job. My dd is off Monday and Friday and the whole weekend this year - so she works on her days off. I don’t expect them to contribute to the house while in college

alchemist33

RiseToMe wrote: »

Since the kids were born we've saved the child benefit foe them and then any cash they get. Without considering interest they should each have about 35k when they turn 18.

Will you give it to them in a lump sum or hold control yourself?

Wanderer78

listermint wrote:

People on here seem to be clocking up tens of thousands .???

Total college cost's can easily exceed 50k here, living costs, particularly rent being the biggest cost, and I seriously doubt that ll be going down soon, if at all

Daisy 55

Accommodation. Costs a bomb!

LuasSimon

It’s a huge concern for a lot of parents but many like myself can’t afford to save with mortgage/car/run of the mill bills etc .
Thinking at this stage anyone with a household income of 40-50k with 2 kids going to college would be as well off on the dole and get the grant .

Heres Johnny

Look up savings and investment plans from life assurance companies folks. If you have 10 years + to save they are a good product. Do not put cash away in a bank for 10,15,18 years for no return at all.
Read up on them and contact a few companies.
Irish life, Zurich, acorn life, Aviva, Royal London.... There are others too.

Wanderer78

LuasSimon wrote:

It’s a huge concern for a lot of parents but many like myself can’t afford to save with mortgage/car/run of the mill bills etc . Thinking at this stage anyone with a household income of 40-50k with 2 kids going to college would be as well off on the dole and get the grant .

In some cases, yup, you d be better off doing so, I know plenty that did, grant and back to education

Nigzcurran

What’s a rough annual cost of college fees, not including accommodation?

jlm29

listermint wrote: »

I'm a bit confused here.


I do understand the cost of college.


But we aren't living in the States folks. Theres the entrance fees and then peripherals. I'd expect my kids to be part time jobs too to like I did to pay for their social activities.


People on here seem to be clocking up tens of thousands .???

Accommodation in Dublin is I think around €8k per year this year. Fees are several thousand too.
I’d expect my kids to get part time jobs too if they could, but I’ve got a lot of work colleagues with kids of college age, who tried very hard a few years ago to get jobs, but there weren’t any jobs to be had. We don’t know what state the country will be in in a few years, in terms of employment, accommodation costs, fees, I wouldn’t like not to be some bit prepared financially.

listermint

jlm29 wrote: »

Accommodation in Dublin is I think around €8k per year this year. Fees are several thousand too.
I’d expect my kids to get part time jobs too if they could, but I’ve got a lot of work colleagues with kids of college age, who tried very hard a few years ago to get jobs, but there weren’t any jobs to be had. We don’t know what state the country will be in in a few years, in terms of employment, accommodation costs, fees, I wouldn’t like not to be some bit prepared financially.

There's jobs everywhere in Dublin presently and has been for a number of years. I know alot of those kids who 'tried' very hard.

Genuinely they didn't . Assumed sending off a few CVS and sitting back was it. Personal experience helping some.

Heres Johnny

Heres Johnny wrote: »

Look up savings and investment plans from life assurance companies folks. If you have 10 years + to save they are a good product. Do not put cash away in a bank for 10,15,18 years for no return at all.
Read up on them and contact a few companies.
Irish life, Zurich, acorn life, Aviva, Royal London.... There are others too.

This.

Throwing money away if saving into a regular account which offers little or no interest rates.

jlm29

pwurple wrote: »

Hard to know isn't it. We live near a uni, so if they go to college, will insist that it is here, not paying for accomodation.

I get the logic in this, and we would be in commuting distance of a university too, but it’s hard to insist on a particular college if your child shows a talent for, or really wants to do a course that’s not available there.
I’d love to see a couple of my kids doing trades I think.

Wanderer78

jlm29 wrote:

I get the logic in this, and we would be in commuting distance of a university too, but it’s hard to insist on a particular college if your child shows a talent for, or really wants to do a course that’s not available there. I’d love to see a couple of my kids doing trades I think.

Definitely nothing wrong with the trades, we need to encourage them more

jlm29

Masala wrote: »

I would suggest keeping the Child Allowance separate and possibly putting it away in the Post Office in one of their guaranteed schemes

This is lovely in theory, but there are many many people who need their child benefit to buy school uniforms, put shoes on their children and to keep up with childcare costs.

listermint

jlm29 wrote: »

I get the logic in this, and we would be in commuting distance of a university too, but it’s hard to insist on a particular college if your child shows a talent for, or really wants to do a course that’s not available there.
I’d love to see a couple of my kids doing trades I think.

No poor plumbers around the place . That facts never changed

Sammy2012

I havent started saving yet as child benefit goes towards childcare but plan to next year. For both mine to go at the moment it would cost approx 25k per year. For fees and accommodation. That's not including anything extra so would want to budget 30k. I will make my kids both get jobs all going well when they are 16 and so plan to make them have their own entertainment money most weeks. But for 2 kids at 4yrs we would be looking anywhere between 100-125k! Its mad money! But we wont qualify for a grant so woll get nothing. The only thing is we might be mortgage free 2yrs before they go. So that would be almost 30k upfront but it's an expensive business!!! Saving all child benefit for 10 yrs would allow another 30k so we only need to make up the other 40k ourselves! Even writing that gives me the shivers!

jlm29

alchemist33 wrote: »

Will you give it to them in a lump sum or hold control yourself?

If I manage to save a decent sum for my kids, they won’t know it exists.

The J Stands for Jay

Masala wrote: »

. I would suggest keeping the Child Allowance separate and possibly putting it away in the Post Office in one of their guaranteed schemes

I would respectfully suggest that this advice will leave you having lost money by the time it's needed.

listermint

Sammy2012 wrote: »

I havent started saving yet as child benefit goes towards childcare but plan to next year. For both mine to go at the moment it would cost approx 25k per year. For fees and accommodation. That's not including anything extra so would want to budget 30k. I will make my kids both get jobs all going well when they are 16 and so plan to make them have their own entertainment money most weeks. But for 2 kids at 4yrs we would be looking anywhere between 100-125k! Its mad money! But we wont qualify for a grant so woll get nothing. The only thing is we might be mortgage free 2yrs before they go. So that would be almost 30k upfront but it's an expensive business!!! Saving all child benefit for 10 yrs would allow another 30k so we only need to make up the other 40k ourselves! Even writing that gives me the shivers!

Plan for it by all means. But they don't all have to or may want to go the formal college.

As stated apprenticeship is solid option.

And if during school one or both develop differently or take an interest elsewhere keep and open mind

jlm29

listermint wrote: »

No poor plumbers around the place . That facts never changed

There seems to be no plumbers full stop. They’re certainly dodging me anyhow, I’d say one of the kids will be a qualified plumber before anyone shows up to fix my wonky sink.

mirrorwall14

We’re saving child benefit. Still tossing around with whether financially it makes more sense to pay the mortgage off faster or be saving it though. Where does one go for actual financial advice that aren’t trying to sell you something?

RiseToMe

Sinus pain wrote: »

You are very generous. I pay college fees and we are in Dublin so no rent- but I expect them to pay for their own bits and bobs and social life from a part time job. My dd is off Monday and Friday and the whole weekend this year - so she works on her days off. I don’t expect them to contribute to the house while in college

We have a 2 bed apartment in Dublin from which both kids will be able to access all Universities and that will be free for them to use. They are very close in age so will overlap. But that's not to say they won't opt for a course elsewhere and we need to be prepared for that.

We are lucky to be in the financial position that we can put this money away. It doesn't haven't to be for college either, it can be used for a car or travel.

And no, to the poster who asked if they will have free rein. They will be given an allowance from it.

jlm29

mirrorwall14 wrote: »

We’re saving child benefit. Still tossing around with whether financially it makes more sense to pay the mortgage off faster or be saving it though. Where does one go for actual financial advice that aren’t trying to sell you something?

That’s the problem. I don’t want to be putting the sales mans college through college while he makes a mess of my own money!

Heres Johnny

Anyone afraid of financial advisors should get some recommendations from family and friends and see a few of them and educate yourself. It's free usually apart from your time spent. Educating yourself is a great investment. No obligation, if you don't like it or it's not for you just say no. I had lots and lots of friends and family using them when I was an advisor (not in this line of work myself anymore) and I haven't fallen out with anyone yet!
Have one myself and watch the fund returns diligently and happy with what it's doing for me. It's in same investment fund as my pension.

mirrorwall14

Heres Johnny wrote: »

Anyone afraid of financial advisors should get some recommendations from family and friends and see a few of them and educate yourself. It's free usually apart from your time spent. Educating yourself is a great investment. No obligation, if you don't like it or it's not for you just say no. I had lots and lots of friends and family using them when I was an advisor (not in this line of work myself anymore) and I haven't fallen out with anyone yet!
Have one myself and watch the fund returns diligently and happy with what it's doing for me. It's in same investment fund as my pension.

I just want someone to tell me honestly if what I suspect is accurate and I should be paying my mortgage down rather than saving. But giving me that advice doesn’t result in any payment for a broker so I’m hesitant. Would they really tell me the full truth? We do have a pension and insurances dealt with by an advisor currently

Masala

jlm29 wrote: »

This is lovely in theory, but there are many many people who need their child benefit to buy school uniforms, put shoes on their children and to keep up with childcare costs.

I certainly appreciate that... cos that is where our Child Benefit went for the first 16 years and then we got a major shock when we started looking at funding Child #1 College. I am just giving my advice on what I would do different if I had to go back to those days. It certainly was worrying going to Credit Union and getting a loan ...knowing that my finances were bad. I didn't even have savings.... at least if I had put some aside my chances of a loan would be alot better.

mirrorwall14

mirrorwall14 wrote: »

I just want someone to tell me honestly if what I suspect is accurate and I should be paying my mortgage down rather than saving. But giving me that advice doesn’t result in any payment for a broker so I’m hesitant. Would they really tell me the full truth? We do have a pension and insurances dealt with by an advisor currently

Do the maths.

Online calculators can help.

No need for a financials advisor imo. All those guys generally tell you is stuff you can find out yourself.

They'll probably do it quicker tbf.

Masala

McGaggs wrote: »

I would respectfully suggest that this advice will leave you having lost money by the time it's needed.

Sorry ... I don't understand??

The PO guarantee your savings and they have have a number of growth schemes if you prepared to lock your savings away for a fixed term. better than the Banks who will apply charges and offer sweet f/a in interest.

If you want to use the money to 'invest' in 'the markets' and know what you are doing ...so be it.

Unknownability

Masala wrote: »

Sorry ... I don't understand??

The PO guarantee your savings and they have have a number of growth schemes if you prepared to lock your savings away for a fixed term. better than the Banks who will apply charges and offer sweet f/a in interest.

If you want to use the money to 'invest' in 'the markets' and know what you are doing ...so be it.

He is talking about inflation, the growth on these accounts most likely won't exceed inflation.

So basically €1 today buys you a bottle of coke in 15yrs you get €1.10 back but a bottle of coke is €1.50 now.

Truckermal

I'm putting away 20 quid a week into the CU since she was born 8 years ago plus any cash she gets for Birthdays goes in too! I think she nearly has 8K at the moment.

Heres Johnny

mirrorwall14 wrote: »

Heres Johnny wrote: »

Anyone afraid of financial advisors should get some recommendations from family and friends and see a few of them and educate yourself. It's free usually apart from your time spent. Educating yourself is a great investment. No obligation, if you don't like it or it's not for you just say no. I had lots and lots of friends and family using them when I was an advisor (not in this line of work myself anymore) and I haven't fallen out with anyone yet!
Have one myself and watch the fund returns diligently and happy with what it's doing for me. It's in same investment fund as my pension.

I just want someone to tell me honestly if what I suspect is accurate and I should be paying my mortgage down rather than saving. But giving me that advice doesn’t result in any payment for a broker so I’m hesitant. Would they really tell me the full truth? We do have a pension and insurances dealt with by an advisor currently

Well start with this advice.

What is your mortgage interest rate?
How much is your savings earning in interest? Or growth if invested?

If mortgage rate is higher than savings rate, you are as well off paying it. Unless, paying extra off mortgage will mean you'll be strapped for cash later and borrow at higher rates for personal loans.

If its an ultra low tracker rate I'd probably be hesitant to pay it off.

My personal situation, have a mortgage at 2.8% interest and 2 cars. Haven't ever put extra into the mortgage as I put a fair whack into my pension (40% tax relief straight away) and bought both cars in cash saving me personal loan rates of approx 8% straight away.

Any advisor will tell you to do a pension plan for the tax relief because its good advice, not because they are just selling you something.
They will also tell you not to save on banks but in a fund invested if you have the time frame to do it. Unless you are massively risk averse. Because its good advice to do so.

An advisor will look at your overall personal situation and come up with a plan, I always presented myself as a financial planner even though I had pensions, savings and insurance products to sell most of what people remember me for is the plan I put in place.

Still give advice to lots of clients even though I've nothing to sell any more! I'm the event they want to do something I refer them to ex colleagues I know will give them good advice and service.

shrek008

We have 3 in Uni at the minute, all in 3 different cities so have fee’s and accommodation to pay x 3, cost is approx €850 pw x 39 weeks! Its a fierce strain but i think you just have to swallow hard and get on with it! Wouldnt it be a hell of a lot worse if it was medical bills we were faced with, on the financing bit, we use the credit union and find them great! My advice for what its worth is to pay the mortgage down and worry about college when and if it happens!

Sammy2012

listermint wrote: »

Plan for it by all means. But they don't all have to or may want to go the formal college.

As stated apprenticeship is solid option.

And if during school one or both develop differently or take an interest elsewhere keep and open mind

Fully agree listermint that apprenticeship is always an option. No point planning too much as in truth nobody knows what's around the corner. But college is big money now unfortunately so if I plan for it and dont need it well I'll have lots for a nice round the world trip or else maybe early retirement!

Sammy2012

listermint wrote: »

Plan for it by all means. But they don't all have to or may want to go the formal college.

As stated apprenticeship is solid option.

And if during school one or both develop differently or take an interest elsewhere keep and open mind

Fully agree listermint that apprenticeship is always an option. No point planning too much as in truth nobody knows what's around the corner. But college is big money now unfortunately so if I plan for it and dont need it well I'll have lots for a nice round the world trip or else maybe early retirement!

SCOOP 64

LuasSimon wrote: »

It’s a huge concern for a lot of parents but many like myself can’t afford to save with mortgage/car/run of the mill bills etc .
Thinking at this stage anyone with a household income of 40-50k with 2 kids going to college would be as well off on the dole and get the grant .

Would you be entitled to Susi grand with a family income under €50,000?

SCOOP 64

mirrorwall14 wrote: »

We’re saving child benefit. Still tossing around with whether financially it makes more sense to pay the mortgage off faster or be saving it though. Where does one go for actual financial advice that aren’t trying to sell you something?

Pay mortgage off first then one of you retire to keep income under €50,000 then get Susi grant to pay ,no brainer.:D

codrulz

I'm in college atm so I'm happy to give out my costs for the year as an example for reference. Obviously, variable costs change from person to person but still a rough sample of yearly costs for college currently.

€9500 P/a on accommodation (private student complex apartment)
€3200 College fees
€13,000 Maintenance (€250 pw)
€1000 on miscellaneous/ averaged out cost of laptop, books computer over four years.
______
€26,700

SCOOP 64

codrulz wrote: »

I'm in college atm so I'm happy to give out my costs for the year as an example for reference. Obviously, variable costs change from person to person but still a rough sample of yearly costs for college currently.

€9500 P/a on accommodation (private student complex apartment)
€3200 College fees
€13,000 Maintenance (€250 pw)
€1000 on miscellaneous/ averaged out cost of laptop, books computer over four years.
______
€26,700

Whats the maintenance, part of the college fees?

codrulz

SCOOP 64 wrote: »

Whats the maintenance, part of the college fees?

A stipend from my parents