As cost-of-living pressures continue, savings rates appear to be making a steady recovery this year after savings and spending habits were impacted by COVID-19 and a sustained period of inflation.
According to Zurich’s annual Cost of Education survey, conducted by iReach this May and June, 56% of families in Ireland already have savings in place that have acted as a shield against the cost-of-living pressures. This figure is slightly up on 2022 (54%).
The good news is that plans to save are on the increase, with the highest levels seen since 2019. Pre-COVID, around 40% of families had committed to putting money aside for a rainy day, which had decreased to 32% by 2022, before climbing to 51 % this year.
Commenting on the findings, Jonathan Daly, Head of Life Retail Distribution and Propositions at Zurich Life Assurance plc said: “It is encouraging now to see the rise in the number of families planning to start saving to plan for the future. In terms of saving for your child’s education, planning ahead and opening a savings account when children are young will help you to manage education costs before they become a significant financial burden.”
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.
The research has found that:
- 56% of parents said they have family savings in place that are used to reduce the financial strain of inflation, up 2% on 2022.
- More than half (51%) of parents now say they are more likely to create a family savings fund to protect against the impact of potential future inflation rises, a big increase of 19% from last year.
- The majority (68%) of students studying at third level education currently live at home, up 10% compared with 2022.
- Parents of third level students paid on average €3,931 on third level fees in this year’s survey.
- The average annual cost of third level student accommodation was €10,077, while rented accommodation had an average annual cost of €5,179.
- Parents estimated the total cost of secondary school education at €3,581.
- 28% of parents have taken out a loan to help pay for their children’s secondary school costs.
Parents can use Zurich’s Cost of Secondary School and College Calculators to work out the estimated costs of sending their children to secondary school and college and to see how much they might need to save each month to meet these costs:
- https://www.zurichlife.ie/tools/cost-of-education-calculator/
- https://www.zurichlife.ie/tools/cost-of-secondary-education-calculator/
The calculators are also accessible via Digital Voice Assistants – see here for more: https://www.zurich.ie/blog/zurich-ireland-voice-services/