Financial Planner at SYS Group Daniel Nagle considers the importance of planning for education in this informative article.
At SYS Group, we take a very broad overview on personal finance and aim to be all-encompassing with our approach. One area we believe to be crucial to people’s finances is education savings. Some might be under the impression that putting away monthly deposits for their children’s education is the only option. Let’s explore another option.
Investing For Education
The minimum term for investments should be five years. This is a well-researched fact, and we emphasise this to every client that we deal with. Cool. That’s understood, and taken on board for investments in general. But, why don’t we apply such logic to education planning? Is it poor advice? lack of awareness? not a “today” problem? You will see from the table below that education is a substantial cost. By the time our children reach third-level, it’s an (average) cost of €12,109 per annum.
Make Money Through Investing
Let’s use an example. You start your child’s saving plan on their 5th birthday. That allows for (approximately) a 13-year term before they start third-level. Based on an 80/20 portfolio, a €50 monthly contribution across 13 years would result in a return of €14,328.67 for an overall investment of €7,800 (based on previous returns). Sounds good, doesn’t it? Long-term savings plans are becoming a fundamental part of our family planning approach, and for good reason. If this sounds like something that would interest you, make an appointment, today.
Rise In Education
According to a recent report, a staggering 54% percent of people between the ages of 25-64 are third-level graduates. We have seen a sharp increase in the number of people attending third-level, with a 17.5% increase in the past 7 years! If this trajectory continues, making a long-term plan for your family’s education is a no-brainer.
Next Step, Plan Ahead
Taking all the above into consideration, you can still be cool and plan for school!
Don’t put it off another day, take the first step and speak with a Financial Planner. Book your appointment here, and let’s get you one step closer to financial peace of mind.
SYS Group is regulated by the Central Bank of Ireland and offers a suite of financial planning services including; retirement and tax planning, mortgage and life protection, investment, corporate structure, wealth management and more.