Sending a child to college is one of the biggest financial commitments many parents in Ireland will face. Between the annual student contribution fee, rising rents, and general living costs, the total bill for a four-year degree can easily run into tens of thousands of euro. Saving for Education in Ireland for families with more than one child, these figures multiply quickly, making education planning an essential part of family financial planning.
In this guide, we break down the true cost of higher education in Ireland, when parents should start saving, the best ways to put money aside, and the tax and charges to be aware of. Whether your child is in preschool, secondary school, or already preparing for university, starting early and planning wisely can help you manage this significant expense.
How much you’ll spend depends on whether your child studies from home or moves out to attend university.
According to the most recent Irish Times and TU Dublin Cost of Living Guide:
For postgraduate study, costs are higher again. Many Master’s programmes range from €9,000 to €35,000 per year, excluding living expenses, books, laptops, and additional course fees.
And for families who choose private secondary schools before university, costs increase further. Some fee-charging schools cost €9,000 annually for day pupils, and boarding can reach €24,500 per year, before adding grinds, extracurriculars, and trips.
It’s clear that education is one of the largest long-term costs a family will face, but unlike other expenses, you know the timeline from day one, which makes planning possible.
Education is predictable. You know your child will likely begin college at 18, so you have nearly two decades to prepare. The earlier you start saving for education in Ireland, the easier it will be to spread the cost and benefit from compounding growth.
Take the Child Benefit payment of €140 per month. If you set it aside every month until your child turns 18, you’d save €30,240. If invested with an average annual return of 5%, this could grow to nearly €48,500, enough to cover most undergraduate costs for a child living at home, or a significant portion if they live away.
Delaying until secondary school is still worthwhile but reduces your time horizon. In that case, your options may lean more towards deposit savings or larger monthly contributions to catch up.
Starting early also means you can explore a wider range of saving and investment strategies, tailored to your risk profile and timeline.
Deposit and fixed-term savings accounts are low-risk and simple to manage. However, interest rates are generally low, and inflation can erode the value of money over time. For example, according to The Irish Times:
These are best for short-term savings, particularly if your child is close to college age.
For longer-term goals (five years or more), investment funds can help your money grow faster than inflation.
For example, if you contribute €250 per month for 18 years with a gross annual return of 6% (before fees or taxes), you could build a fund worth about €76,072. By comparison, the same contributions without investment growth would amount to €54,000.
Many providers offer education-focused investment products (regular savings plans or lump-sum investment funds offered by Irish life insurers and investment providers). Minimum contributions typically start at €125/month or €20,000 lump sums.
While investing carries risk, markets have historically outperformed cash savings over the long term, making this a suitable option if you start early.
Redirecting Child Benefit directly into a savings or investment plan is one of the simplest and most effective ways to fund education costs. It’s regular, untaxed income from the government, and aligns perfectly with the 18-year timeframe before third-level education.
Parents and grandparents can each give up to €3,000 per year per child tax-free (€6,000 per couple). Over time, and if invested, these contributions can make a substantial impact on education savings.
Click the following link to read more about Small Gift Exemption
If you choose investment-based savings, be aware of the associated costs:
When comparing providers, always check the allocation rate (the percentage of your contribution actually invested) and factor in charges, as they can significantly affect your final return.
Not every parent has the chance to save for 18 years. If your child is already in college, there are still ways to manage costs:
Small, consistent steps can add up to big results when spread across 10–18 years.
Education is one of the few major expenses you can plan for decades in advance. But with multiple saving options, tax rules, and investment products, making the right choice can be complex.
A financial adviser can help you:
At Fairstone, we offer expert financial planning tailored to your circumstances. Whether you are just starting to save for a newborn, planning for private secondary school, or already funding a college student, we can help you put a clear, tax-efficient strategy in place. With our support, you can fund your child’s education with confidence while protecting your long-term financial wellbeing.
Sources:
Revenue.ie
Related articles:
Investment Options in Ireland: Choosing the Right Path for your Portfolio
Inheritance Tax Explained: Who Pays, How Much, and Key Exemptions
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