College savings

clones1980 · 06-09-2019 5:26pm #1

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 · 06-09-2019 10:20pm

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 · 06-09-2019 10:23pm

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 · 06-09-2019 10:25pm

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 · 07-09-2019 4:38am

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 · 07-09-2019 5:48am

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 · 07-09-2019 5:49am

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 · 07-09-2019 5:49am

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 · 07-09-2019 5:50am

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 · 07-09-2019 7:56am

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 · 07-09-2019 8:26am

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 · 07-09-2019 8:29am

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 · 07-09-2019 8:31am

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 · 07-09-2019 8:32am

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 · 07-09-2019 8:32am

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 · 07-09-2019 8:33am

Accommodation. Costs a bomb!

LuasSimon · 07-09-2019 8:33am

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 · 07-09-2019 8:34am

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 · 07-09-2019 8:35am

LuasSimon wrote:

Itâ€™s a huge concern for a lot of parents but many like myself canâ€™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 · 07-09-2019 8:46am

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

jlm29 · 07-09-2019 8:46am

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 · 07-09-2019 8:49am

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.

Bobeagleburger · 07-09-2019 8:50am

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 · 07-09-2019 8:52am

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 · 07-09-2019 8:54am

jlm29 wrote:

I get the logic in this, and we would be in commuting distance of a university too, but itâ€™s hard to insist on a particular college if your child shows a talent for, or really wants to do a course thatâ€™s not available there. Iâ€™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 · 07-09-2019 9:01am

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 · 07-09-2019 9:02am

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 · 07-09-2019 9:03am

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 · 07-09-2019 9:04am

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 · 07-09-2019 9:06am

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 · 07-09-2019 9:07am

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

College savings

Comments