The Rising Cost of Future-Proofing Your Child’s Financial Future
Is providing for your children’s basic needs enough in today’s Ireland? Increasingly, parents are considering long-term savings strategies to address the escalating costs of third-level education, homeownership, and even modest life events like weddings. The question isn’t just about sustenance, but about equipping the next generation for a financially challenging landscape.
The Third-Level Education Hurdle
The cost of higher education is a primary driver of this trend. While the annual student contribution fee is set to be permanently reduced by €500 in 2026, according to Citizens Information, the overall expense remains significant. Beyond tuition, students face substantial costs for accommodation, books, and living expenses. The gap in educational inequality is also widening, with a decline in students from lower socioeconomic backgrounds progressing to colleges and universities – 59% of Deis school students went on to third-level in 2025, compared to 64% in 2024, as reported by the Social Democrats.
Investing vs. Saving: A Critical Distinction
Financial advisor Robert Whelan of Rockwell Financial emphasizes the importance of investing rather than simply saving. “If your savings aren’t keeping pace with rising costs in terms of inflation, you’re going to end up with a dramatic shortfall.” He cautions against chasing unrealistic savings goals popularized on social media, advocating for a pragmatic approach. The key, he says, is simply to start, and to incrementally increase contributions as income rises – essentially, inflation-protecting your contributions over time.
Tax-Efficient Savings Strategies
Whelan highlights the benefits of the annual gift exemption, also known as the Compact Gift Exemption. Parents can each contribute up to €6,000 per year to their child tax-free, providing a potentially significant boost to their savings.
Beyond Education: The Broader Financial Landscape
The challenges extend beyond third-level education. Securing affordable housing, whether renting or buying, is increasingly difficult for young people. The cost of living crisis, characterized by high rents, grocery prices, and energy bills, is forcing many families to rely on charitable assistance for educational costs, and even to withdraw from further education altogether.
Teaching Financial Literacy to the Next Generation
Saving for your children’s future isn’t just about the money itself. it’s also an opportunity to instill sound financial habits. Experts recommend discussing the value of money with children and discouraging reliance on buy-now-pay-later schemes.
The Importance of Early Pension Planning
Whelan shares a personal anecdote, admitting he delayed starting his own pension despite working in the pensions industry. This underscores the importance of beginning pension contributions early, even if it’s a small amount.
CAO Registration Deadlines for 2026 Entry
For students planning to apply to Irish third-level institutions for the 2026 academic year, registration with the CAO is crucial. The early bird rate of €35 was available until January 20th, 2026, with a final registration deadline of February 1st for a fee of €50. Applicants have until July 1st to finalize their course choices.
Did you understand?
The Government of Ireland International Education Scholarship (GOI-IES) programme supports international students seeking to study in Ireland.
Frequently Asked Questions
- How much should I save for my child’s education? There’s no one-size-fits-all answer. It depends on your income, expenses, and the type of education your child pursues.
- What is the best way to invest for my child’s future? Consult with a qualified financial advisor to determine the most appropriate investment strategy based on your risk tolerance and financial goals.
- Is it too late to start saving? No! Starting late is better than not starting at all.
- What is the annual gift exemption? It allows parents to gift up to €6,000 per year to each child tax-free.
Ready to take control of your family’s financial future? Explore more articles on financial planning and investment strategies on our website. Share your thoughts and questions in the comments below!
