Zurich study reveals parents’ commitment to education amid high education expenses and high cost of living

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."

Key findings

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.

The Cost of Education survey provides insights into how much parents are spending, what factors are influencing how much they save and how they plan to save for the cost of their children’s second and third level education:

• 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.

Help your clients plan ahead to meet rising education costs

Providing for their children’s education, from primary school right through to third level, is a priority for all parents. The costs of education are substantial and continue to rise. One solution is for parents to start early and gradually build up the funds necessary to support their children’s education.

Parents can use Zurich’s Cost of Secondary School Calculator to work out the estimated costs of sending their children to secondary school and to see how much they might need to save each month to meet secondary school costs. Parents can also use Zurich's Cost of Education benchmarking tool to see how education costs compare and pinpoint where savings could be made. You can also use our Financial Health Check tool with your clients for additional insights.

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For more information

Zurich encourage people to talk to a Financial Broker to help set their savings goals, plan their budget and choose the right plan for their family. Parents can use the Cost of Education Calculators to work out the estimated costs of sending their children to school and/or college and to see how much they might need to save each month to meet these costs. Zurich also offers a wide range of supports for Financial Brokers with a suite of sales material that can help highlight the importance of saving, for your clients. For more information, speak to your Zurich Broker Consultant or visit zurichbroker.ie.

Source: Zurich Cost of Education Survey, 2024