Parents feeling financial impact of COVID-19

Nearly half of parents surveyed believe their financial situation has been negatively affected by COVID-19, according to new research carried out by Zurich.

New research entitled The Cost of Education in Ireland, finds that nearly half of parents surveyed (42 percent) believe their financial situation has been negatively affected by COVID-19 through reduced income and/or increased costs. As a result, almost one-in-four (23 percent) of parents believe they will suffer from increased financial strain in sending their children to school due to the economic impact of COVID-19.

Of those surveyed, 60 percent had some form of family savings in place and were able to reduce the financial strain of COVID-19. And over a third (39%) of parents said they are now more likely to create a family savings fund to protect their family against the impact of potential future crises, similar to COVID-19.

Commenting on the findings, Jonathan Daly, Head of Life Retail Distribution and Propositions at Zurich said: “The findings from this year’s research highlight the increased financial strain many families are under since the outbreak of the COVID-19 crisis. However, the pandemic has also highlighted the importance of saving money and early financial planning. There is an opportunity now for families to make some of the money-saving habits sparked by the pandemic stick long-term. Opening a savings account when children are under a year old will allow you to prioritise education costs before they become a significant financial burden.”

Almost one in four (23%) parents say the cost of rearing their children has increased as a result of the COVID-19 pandemic, while 17% say their costs have decreased. Sixty percent believe their costs have remained the same. A full breakdown of costs can be found on the Zurich website for primarysecondary and college education.

Ensuring they can provide for their children’s education, from primary school right through to third level, is a priority for all parents. While education in Ireland is free in principle, the reality is that the costs of education are substantial and continue to rise. With a tailor-made savings plan from Zurich from as little as €75 per month, parents can gradually build up the funds necessary to support their children’s education. Zurich encourages people to talk to an independent financial advisor to help set their savings goals, plan their budget, and choose the right plan for their family.

Parents can use the 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. The calculator is also accessible via Digital Voice Assistants; see here for more information on our voice search services.