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Expert Financial Advice on Preparing for your Child’s Education

Are you prepared for your childs education?

eumom Finance Expert, Trish Kelly of babystepsforyou.com, gives advice on setting up your family finances in preparation for your child's education.

A question I often ask my clients when setting up their financial plan is, "are you planning for your children's education?"

A great education is the best possible start in life, and for most parents, ensuring they can provide for their children’s education is crucial. By starting when your children are young, you begin to experience financial discipline and it also allows you to spread the cost over a longer period, which may bring you higher growth potential. You will also have the peace of mind that your children’s education is provided for. The cost of raising a child from birth to third-level education is over €100,000 for every household, so a sensible savings plan can make all the difference to your Child’s future. With this in mind I have put together the following example which I believe will open your eyes as to what is achievable by investing your monthly Child benefit payment into an investment plan.

Example of 1 Child Family - receiving Child benefit Payment of €140

  • 10 years savings plan yields = €21,277.98
  • 15 years savings plan yields = €36,501.51
  • 20 years savings plan yields = €55,544.90

Example of 2 Children Family - receiving Child benefit Payment of €280

  • 10 years savings plan yields = €42,830.44
  • 15 years savings plan yields = €73,464.77
  • 20 years savings plan yields = €111,773.60

What’s important to note, is these plans are open-ended, so will allow you to ‘dip-in’ (withdraw certain amounts) also known as ‘partial encashments’ - over a number of years and will allow the investment plan to continue.

How to Get Started?

I always advise clients to set clear goals, and to ask yourself what you are saving for and how much time you have. This will help you stay motivated and on the right track. It is also important to plan a household budget of your monthly expenditure and income. This will you help you see where you are spending and help to reduce some unnecessary costs which will allow you to save more.

Why should you invest your money into an investment plan and not the post office or bank?

Because your post office or bank can only offer low return products, therefore your return may disappoint you.

Bottom Line - Don’t leave it too late to Plan!

To learn more visit babystepsforyou.com or call our office at 01 6279495 where myself or a member of our Team are available to assist you.

NB: Investment plan quotes are based on an annual growth rate of 5.10%. These figures are estimates only. They are not a reliable guide to the future performance of this investment.

About the Author

Hi, I’m Trish Kelly, eumom Finance Expert and Director of BabyStepsForYou.com. At BabySteps, we offer a wide range of financial services from insurance, mortgage, investment and retirement planning.

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