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Best way to save for kids college?

  • 19-08-2019 6:09am
    #1
    evilbaby77
    Registered Users Posts: 23 ✭


    My baby is due in two weeks and i am wondering whats the best solution to save regularly for his education? Would you guys save child benefit? Where do you put it? Thanks


Comments

  • #2
    Kintarō Hattori
    Registered Users, Registered Users 2 Posts: 14,998 ✭✭✭✭Kintarō Hattori


    evilbaby77 wrote: »
    My baby is due in two weeks and i am wondering whats the best solution to save regularly for his education? Would you guys save child benefit? Where do you put it? Thanks

    We save the child benefit we receive into the Childcare Plus scheme which is run through An Post. That's a low risk scheme which gives a decent return for up to five years. After five years we'll look again to see what the best option is.


  • #3
    Wheety
    Registered Users, Registered Users 2 Posts: 5,512 ✭✭✭Wheety


    Kintarō Hattori wrote: »
    We save the child benefit we receive into the Childcare Plus scheme which is run through An Post. That's a low risk scheme which gives a decent return for up to five years. After five years we'll look again to see what the best option is.

    I was looking at this too. You save for 12 months and then it's put away for 5 years. Do you know if you can start a new one every year?


  • #4
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,735 Mod ✭✭✭✭Henry Ford III


    The return is below 1% p.a.

    Inflation is higher.

    The only guarantee is that you'll lose money in real terms.


  • #5
    homer911
    Registered Users, Registered Users 2 Posts: 5,129 ✭✭✭homer911


    Henry Ford III wrote: »
    The return is below 1% p.a.

    Inflation is higher.

    The only guarantee is that you'll lose money in real terms.
    As opposed to spending it, and losing it all in absolute terms??

    If OP is looking for a low risk, long term investment that is tax free then they wont do any better


  • #6
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,735 Mod ✭✭✭✭Henry Ford III


    homer911 wrote: »
    As opposed to spending it, and losing it all in absolute terms??

    If OP is looking for a low risk, long term investment that is tax free then they wont do any better

    If you've a long term (18 years) the best way to go is to invest. Yes there's a risk element but it'll be worth it.


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  • #7
    suilegorma
    Registered Users Posts: 97 ✭✭suilegorma


    Do you have a mortgage? If so, overpaying your mortgage is the equivalent of saving at the interest rate of your mortgage. Risk free. Actually more when you take DIRT into account. Investigate how much shorter your mortgage will be by overpaying by the benefit each month. Them fund college through your former mortgage payments.


  • #8
    cooperguy
    Registered Users, Registered Users 2 Posts: 2,650 ✭✭✭cooperguy


    suilegorma wrote: »
    Do you have a mortgage? If so, overpaying your mortgage is the equivalent of saving at the interest rate of your mortgage. Risk free. Actually more when you take DIRT into account. Investigate how much shorter your mortgage will be by overpaying by the benefit each month. Them fund college through your former mortgage payments.
    This is the way to go. You kill two birds with one stone and save thousands in interest


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