College savings

Decoda

Obviously costs are going to vary but in my opinion those Zurich costs are too low. Our agreement with our daughter is that she pays her own college fees by working during the Summer.

In first year my daughter stayed at one of those purpose built off campus student villages. We tried to get on campus but were unsuccessful. Her first year costs were 8,000 for accomodation, 3,000 in college fees, 1000 in transport costs (20e bus home each weekend and Dublin bus during the week). Living costs / college books and equipment were another 2,000. Thats a total of 14,000 for year 1.

In second year she managed to get on campus accomodation, this was 6,000. Add in fees of 3,000 transport of 1000 and living costs of 2,000 and it's a total of 12,000.

Next year she's thinking of getting a house with some friends. That will bring the accomodation down to maybe 5,000 but we are still looking at a minimum of 11,000 for the year.

By the time she graduates it will probably have cost in the region of 40,000 to 45,000 for a 4 year degree in Dublin.

Sunrise_Sunset

I used the numbers that Zurich gave as a guideline to get me started with saving last year.
I can see that pretty much everyone who posted in this thread actually have much higher costs.
I can't afford to save any more than what I am right now. I aim to have the mortgage paid off early but not sure if it will be cleared before they start 3rd level education. I will have a couple of years overlapping for my kids too which will be tough.

Decoda

That was our aim, to pay off the mortgage just she started and continue on with that payment to try and cover her college costs. It's not easy but hopefully there might be some reduction in college fees or accomodation costs in the future which might soften the blow. All the best.

D.

J DEERE

listermint wrote: »

No poor plumbers around the place . That facts never changed

Thats a fact. Tradespeople are on the decline, it will be impossible to get them in 10 years. Most of the lads I know who did an apprenticeship during the boom emigrated and never returned. Then there were very few lads who took up apprenticeships over last 10 years or so because of availability and job prospects. So there will be a shortage. Id have no problem with any of my children going into the trades. But for some reason kids these days are having the college thing rammed down their throats. Be careful blowing all your savings on education, half the degrees out there now are worthless

LuasSimon

Its amazing that parents in this country can pay for their children to go to college circa 40-50K per child.

Ive friends in the UK who dont pay or probably cant pay, their kids get the Government loan and leave college with loans of 40-50K from government instead .

Sunrise_Sunset

I would rather my kids didn't start off their professional lives with huge loans like that hanging over them. If I can afford to help them out, then I will. I would also hope that they'd have part time jobs to contribute as I doubt I'd be able to cover the full costs.
But I don't know what my finances will be like by then, and what the job prospects will be either. All I can do is save now as best as I can. Anything is better than nothing.

Bobeagleburger

LuasSimon wrote: »

Its amazing that parents in this country can pay for their children to go to college circa 40-50K per child.

Ive friends in the UK who dont pay or probably cant pay, their kids get the Government loan and leave college with loans of 40-50K from government instead .

If you can take stress off your kids it can only be a good thing. Not everyone can afford to pay for every college expense and year, but everything helps.

The key is starting a fund early.

The Uk model is hardly a shining light.

cooperguy

McGaggs wrote: »

Paying into a fund leaves you with a fund at the end of your investment period. How do you intend capturing the savings made by overpaying the mortgage? It's not like you'll have a lump sum returned by the mortgage provider at the end (which won't be the same time as your kid starts college in most cases).

Most of the people discussing this here have very young children. It is very possible to target your mortgage to be completed in time for college to come along (obviously not in every case). Play with a mortgage calculator and see how big the effect of over paying is. If you are no longer paying a mortgage your monthly repayment, or at least part of it, can go to college funding (and you could save 70k+ in interest, almost risk free and totally tax free)

Lucuma

My kids are age 4 and 5 I was watching that Eoin McGee programme on RTE about how to be good with money. He suggested putting money into a long term savings option now for the college fund as even though such funds will inevitably go up and down, because it's over such a long period of time the rises and falls will cancel each other out. That made sense to me so I started a new Irish life savings putting 150 per month into it. I chose one of the lower risk options and set it up directly with Irish life so no broker fee (there is of course an irish life fee). I feel good that I've at least done something about college fund now!

Mantis Toboggan

College savings are a little pointless in my opinion, much better off trying to pay off the mortgage. Firstly the kids might not want to go to college, trade's are alot more valuable these days. Allows people to travel the world working and are much more likely to setup their own business. Starting hourly wage for an electrician is 25 euro, not bad for a 22 year old.

jlm29

Mantis Toboggan wrote: »

College savings are a little pointless in my opinion, much better off trying to pay off the mortgage. Firstly the kids might not want to go to college, trade's are alot more valuable these days. Allows people to travel the world working and are much more likely to setup their own business. Starting hourly wage for an electrician is 25 euro, not bad for a 22 year old.

I’d love my kids to do a trade. But at the end of the day, if they want to do something else, then I wouldn’t tell them they can’t and they have to do a trade. Three of my kids are very close in age, and could potentially be in college at the same time, so my intention is to save for that eventuality. I’d rather they weren’t leaving college with big loans over their heads. If they Choose not to go to college, the money can be used for something else

jules5417

I am at the other end of the college journey and I would like to give you all a bit of advice. When you child hits their college years do not be disappointed if they are not grateful for all the saving you have done to get them to college,they wont care and they wont think what you did is a big deal.I know parents say they dont care if its not appreciated,you will. I have countless friends who saved for their college fees and the kids did not appreciate it and also a lot of them wasted their years at college because they didnt have to work for it a few left their course and expected mum and dad to pay again. The parents who insisted their children got a part time job and worked through college like we did with our son,worked much harder,were motivated to work whilst at college, appreciated every little piece of help we gave him. He now has a brilliant job and values what we taught him. I am not going to lie he wasnt that pleased when we told him he would have to get a job but he really gets it now. So honestly spend half of the savings on a trip of a lifetime and then pay the registration fee, honestly they will be more motivated. there is an old saying if you get something too easily you wont value it. I know they are cute at the moment but take my word for it in a short few years anything you give them wont be appreciated. Enjoy your holidays when they get to college

jlm29

jules5417 wrote: »

I am at the other end of the college journey and I would like to give you all a bit of advice. When you child hits their college years do not be disappointed if they are not grateful for all the saving you have done to get them to college,they wont care and they wont think what you did is a big deal.I know parents say they dont care if its not appreciated,you will. I have countless friends who saved for their college fees and the kids did not appreciate it and also a lot of them wasted their years at college because they didnt have to work for it a few left their course and expected mum and dad to pay again. The parents who insisted their children got a part time job and worked through college like we did with our son,worked much harder,were motivated to work whilst at college, appreciated every little piece of help we gave him. He now has a brilliant job and values what we taught him. I am not going to lie he wasnt that pleased when we told him he would have to get a job but he really gets it now. So honestly spend half of the savings on a trip of a lifetime and then pay the registration fee, honestly they will be more motivated. there is an old saying if you get something too easily you wont value it. I know they are cute at the moment but take my word for it in a short few years anything you give them wont be appreciated. Enjoy your holidays when they get to college

See that’s it. I had a job and worked through college. I’d love my kids to do the same. But the registration fee alone is about 5 times now what it was when I was in college, and I’m not that old!

ebayissues

A friend who lives in one Norway told me that when she was in college, her parents and her friends parents (3, so 4 in total) bought an apartment near the college/university that she went. They sold it after they finished their degree's 5 years later.


It could cause headache for some.

El Gato De Negocios

jules5417 wrote: »

I am at the other end of the college journey and I would like to give you all a bit of advice. When you child hits their college years do not be disappointed if they are not grateful for all the saving you have done to get them to college,they wont care and they wont think what you did is a big deal.I know parents say they dont care if its not appreciated,you will. I have countless friends who saved for their college fees and the kids did not appreciate it and also a lot of them wasted their years at college because they didnt have to work for it a few left their course and expected mum and dad to pay again. The parents who insisted their children got a part time job and worked through college like we did with our son,worked much harder,were motivated to work whilst at college, appreciated every little piece of help we gave him. He now has a brilliant job and values what we taught him. I am not going to lie he wasnt that pleased when we told him he would have to get a job but he really gets it now. So honestly spend half of the savings on a trip of a lifetime and then pay the registration fee, honestly they will be more motivated. there is an old saying if you get something too easily you wont value it. I know they are cute at the moment but take my word for it in a short few years anything you give them wont be appreciated. Enjoy your holidays when they get to college

My own thinking on it is not to make their lives easier, its to make our lives easier if and when the time comes. Im 41 now and have worked since the summer I turned 18, either part time or full time, the only prolonged period of unemployment I had was between 2008 and 2009 when the recession hit and I was out of work for 10 months. Its not going to be a case of we have saved X amount, there you go child. It will be for things like registration fees. We live in Dublin currently and probably always will so hopefully if they do decide to pursue academia it will be in Dublin and we wont have the hassle of finding and paying for accommodation. As soon as is possible I want them to get a part time job. Anything I ever got when I was growing up it was earned, either working at home or working myself. There will be no free lunch and no entitlement with our kids. It is my aim that they will learn the value of money and to instill a sense of pride in earning something yourself rather than being handed it constantly.

We have a very good university less than 3km from us as the crow flies. College fees are €3k per year. The college has work placement for approx 9 months mid way through, eldest insisted on paying the remainder of their college fees from the pay they got from working.

So, a nominal expense.

I agree with the sentiment that to over pay on mortgage a better option if possible. We'll be mortgage free by 50. Had our kids young and plan to go on a round the world trip (assuming things get back to normal) in a few years. Can't wait.

helimachoptor

We do the CA for our kids. We live in Dublin so would expect they'll go to one of those colleges rather than head off down the country or to the UK.

pwurple

McGaggs wrote: »

Paying into a fund leaves you with a fund at the end of your investment period. How do you intend capturing the savings made by overpaying the mortgage? It's not like you'll have a lump sum returned by the mortgage provider at the end (which won't be the same time as your kid starts college in most cases).

No, but you will have your mortgage repayment amount as disposable income.

College fees are payable in installments over the year, and accommodation cost, living costs are also not all up front. The intention is that you substitute your mortgage expense on your budget sheet for college expenses. Even better if you get there a year or two ahead of when it's needed, you build up a year of funds in advance, when inflation won't eat them.

pwurple

pwurple wrote: »

No, but you will have your mortgage repayment amount as disposable income.

College fees are payable in installments over the year, and accommodation cost, living costs are also not all up front. The intention is that you substitute your mortgage expense on your budget sheet for college expenses. Even better if you get there a year or two ahead of when it's needed, you build up a year of funds in advance, when inflation won't eat them.

While I certainly agree with overpaying a mortgage if possible I think having a decent sized lump sum would be very beneficial and would make me personally much more comfortable. There is also the fact that even with overpaying many will not have their mortgage paid off in time leaving you having to eat into other savings or worse trying to pay a mortgage and fund college out of a monthly salary.

I know reg fees were paid in one go up front when I was in college but this was how my parents wanted to do it so never looked for an instalment option.

As far as appreciating it, not being prepared to pay for your children education because they might not appreciate it is daft. I worked weekends and during the summer for 3 years of college but stopped in final year to concentrate fully on getting the best results I could. My parents paid for all college expenses, paid for my insurance and car etc (I lived at home) and I paid for fuel, nights out, lunches, clothes and any stuff I wanted from my jobs. Final year my parents paid for everything. All though college but especially final year I very much appreciated the support of my parents and not working final year was definitely the reason I was able to get such good results.

Saylor Better Sandpaper

Saylor Better Sandpaper wrote: »

While I certainly agree with overpaying a mortgage if possible I think having a decent sized lump sum would be very beneficial and would make me personally much more comfortable.

This is key, or horses for courses. What might be most financially sound may not be the best choice for someone.

If it gives someone peace of mind to put funds into a savings account then it may be the best option for them all things considered.

pwurple

Saylor Better Sandpaper wrote: »

While I certainly agree with overpaying a mortgage if possible I think having a decent sized lump sum would be very beneficial and would make me personally much more comfortable.

That may be so for you, I personally don't like making emotional decisions about something like money. Prefer to base decisions on the calculations.

There is also the fact that even with overpaying many will not have their mortgage paid off in time leaving you having to eat into other savings or worse trying to pay a mortgage and fund college out of a monthly salary.

And if that's the case in your projections, then adjust your financial plan accordingly. I aim to have a 2 year buffer. So we have some wiggle room if interest rates rise (which I wouldn't expect in the coming recession now) or if there is something unexpected like health problems or an income drop.

I'm not sure if it's helpful, but I keep a document with our financial plan and goals in it, and every six months or so we take a look and see if the plan is working, if the goals are the same, if any global events made a difference.

It covers things like pension status, any big costs we are trying to clear (creche was one, a car loan for example, mortgages), and the plan for any big spends. Changing the car maybe in 4 years time, or something like that. Nice to not have to rethink this stuff every time.

Sunrise_Sunset

pwurple wrote: »

I'm not sure if it's helpful, but I keep a document with our financial plan and goals in it, and every six months or so we take a look and see if the plan is working, if the goals are the same, if any global events made a difference.

It covers things like pension status, any big costs we are trying to clear (creche was one, a car loan for example, mortgages), and the plan for any big spends. Changing the car maybe in 4 years time, or something like that. Nice to not have to rethink this stuff every time.

Personally, I love this idea and have a very similar process. I follow a budget and have short term and long term financial goals set. The unexpected can always crop up too, so an emergency fund is important. I'm trying to save for a few goals simultaneously, and also overpaying on my mortgage.

RedXIV

I've a young fella about to go into senior cycle and we've nothing saved (just to make people in the same situation here feel better ) as we've been focused on nothing but the house deposit for the last few years. We're in a luckier position than some in that we've a lot of family in Dublin (as we are now currently but hoping to move out) so if he wanted to study in Dublin, he could and live rent free here.

I am not much more than a decade out of college myself for my undergrad, but I worked very hard to put myself through it for part time hours for registration and living money, and was lucky enough to have parents help with accommodation. but there is no way I'd be giving money to live for students, one of the key drivers for me to realise WHY you're going to college is to suffer through the stereotypical part time jobs students get. I cleaned night club toilets, gave out flyers, among many other random jobs, usually more than 2 at a time to pay for everything in college and I'm still grateful for my nice office job in IT now. I've met a lot of people who never worked before their first professional job and it's always amusing to watch them get irritated over things you'd be lucky to get in these crummy jobs.

I also think the idea of paying for a masters also is overkill, I finally got my masters this year after paying for it myself and I can tell you wholeheartedly I put far more effort into that than I did my undergrad. I'd also be very happy to see any of my kids go into trades, but that's mainly because I'm so useless with my hands I could use the help

pwurple

pwurple wrote: »

That may be so for you, I personally don't like making emotional decisions about something like money. Prefer to base decisions on the calculations.

To me its not an emotional thing it's a practical and financially prudent thing. My plan would be to have something in the region of 40 to 50k kept aside for college totally separate to normal savings. That would be 30k from saving child benefit and the rest from adding bits here and there along with interest or gains from investing it. To me this is a very financially sound way to do it and will leave no surprises or financial issues.

eviltwin

I've one graduate here who cost us a huge amount mostly due to a year spent studying in Asia. It meant a lot of sacrifices. Not sure I'd be willing to do it again.

The other child is 10 and I've very little put away for him but my mortgage is finally paid off this year so that and any extra cash I have will go into the college fund.

lazygal

We've three children and they'll be going to college in Dublin if they want third level, purely because there's no chance of us funding living anywhere else, including a stint abroad. It wasn't said to us by my parents that this was the way it was for college either, it was simply assumed that given our location it made no sense to live anywhere but home for the duration.

We haven't made huge plans for college but given our childcare costs even if we still have a mortgage I can't see college costing more than that costs us every month.

LuasSimon

This whole Covid working/studying from home is definitely going to change how colleges work, for those that dont live near their college it could well be the case of only needing to be on campus 1 or 2 days any week and having lectures online the rest of the week which could make significant savings for parents and students alike. It also will free up houses in areas near colleges for families and ultimately ease the housing crisis in Dublin especially.

jules5417

Saylor Better Sandpaper wrote: »

While I certainly agree with overpaying a mortgage if possible I think having a decent sized lump sum would be very beneficial and would make me personally much more comfortable. There is also the fact that even with overpaying many will not have their mortgage paid off in time leaving you having to eat into other savings or worse trying to pay a mortgage and fund college out of a monthly salary.

I know reg fees were paid in one go up front when I was in college but this was how my parents wanted to do it so never looked for an instalment option.

As far as appreciating it, not being prepared to pay for your children education because they might not appreciate it is daft. I worked weekends and during the summer for 3 years of college but stopped in final year to concentrate fully on getting the best results I could. My parents paid for all college expenses, paid for my insurance and car etc (I lived at home) and I paid for fuel, nights out, lunches, clothes and any stuff I wanted from my jobs. Final year my parents paid for everything. All though college but especially final year I very much appreciated the support of my parents and not working final year was definitely the reason I was able to get such good results.

You were different,you worked for part of the time. The ones im referring to are those that did no part time jobs. By the way i didnt just say dont help because they dont appreciate it,I said also theg dont value it,changed courses etc.

markpb

LuasSimon wrote: »

This whole Covid working/studying from home is definitely going to change how colleges work, for those that dont live near their college it could well be the case of only needing to be on campus 1 or 2 days any week and having lectures online the rest of the week which could make significant savings for parents and students alike. It also will free up houses in areas near colleges for families and ultimately ease the housing crisis in Dublin especially.

Jesus that’s a depressing college experience. If all I learned in college was in lectures, it would have been a waste of time.

Paul_Mc1988

I assume most of the people here are living far away from a college or university. Its only €3000 for the fees currently. Paying for the fee for the kids along side any extra they need €1000 and help them get a job to pay for the social side of things. I'm of the opinion I wont have to save for it. Anyone else living in south county Dublin any other opinion?