Help your clients fund for their children’s education

At Zurich we’ve seen Financial Brokers share of the savings market grow dramatically over the last few years. There are a number of reason for this, including the continuing low deposit rates on offer to customers, and the introduction of Zurich’s ground breaking ‘Easy Access’ products.  When we look at why customers save regularly, saving for a child’s education is always at or near the top of the list. Zurich’s recently published research into the cost of education highlights the challenge parents will face in the future unless they put a financial plan in place today. The research indicates that over 50% of parents fund 3rd level costs out of day to day expenditure which must be a significant challenge. By planning ahead and putting an amount aside every month, parents will be in a much better position come college time.

The cost of third-level education

The financial cost of putting a child through college is significant with an average total spend for third-level education per year of €4,611 per student, if the student is living at home. For those not living at home the highest spend item during the college year is accommodation with the average cost ranging from €3,750 to €4,219 per year. 

When it comes to paying for third-level costs, 48 percent of parents use savings to pay for their children’s college while 56 percent use monthly income. There is a reduction in the level of parents getting into debt to cover college related expenses; 41 percent of parents say they got into debt to cover college-related expenses in 2019 compared with 52 percent in the previous year. Of those parents who got into debt, the average debt amount reduced to €1,388 from €1,577 with 66 percent in debt of over €1,000 (compared to 79 percent in 2018). The number of those with a debt of €2,000 or more has also gone down from 57 percent to 46 percent.

The importance of independent financial advice

The Zurich study found that 70 percent of parents consider covering the cost of their children’s education to be a financial burden. Three quarters of parents (75 percent) have a savings account and 39 percent of parents believe the best time to start saving for their child’s education is when the child is less than one year old. 

When it comes to financing children’s education, the higher the educational level, the greater need to save for this expense. 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.

• Use our Cost of College Education Calculator
• Download Cost of Education Sales Aid
• Download Easy Access Brochure

For more information on Zurich’s range of savings and investments products speak to your Zurich Broker Consultant or visit zurichbroker.ie.