Study reveals parents’ commitment to education

The Zurich Cost of Education in Ireland 2024 research* focuses on primary, secondary, and third level education and unveils the strategies and determination of parents across the country when it comes to education.

Key findings from the study:

• 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.

Managing education costs

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.

“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 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.

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.

Tools to help plan for education costs

At Zurich, we want to help you plan for your children’s future educational needs. We have lots of tools you can use to help plan ahead. For example, our Cost of Secondary School Calculator is a tool that helps you work out how much you need to save to cover the costs of putting children through secondary school and our Cost of College Education Calculator will show you the estimated costs of sending your children to college so you can see how much you might need to save each month to meet these college costs.

You can also use our Cost of Education Benchmarking Tool to see how education costs compare and pinpoint where savings could be made. Alternatively, why not try our Financial Health Check for more insights into your overall financial wellbeing?

Download the cost of education report

Source: *Zurich Cost of Education Survey 2024 conducted by iReach Insights.

The information contained herein is based on Zurich Life’s understanding of current Revenue practice as at August 2024 and may change in the future.