College Savings Planning in Ireland: A Comprehensive Guide for Parents (2023)


Saving for your child’s college education can be a daunting task, considering the rising costs of tuition. However, with proper planning and the right financial tools, you can secure a bright future for your child without being overwhelmed by financial burdens. One such tool is a Children’s College Savings Plan, a unit-linked savings plan designed to help parents, relatives, and investors save for the educational expenses of their loved ones. In this blog post, we will explore the benefits, eligibility, and considerations of a Savings Plan, empowering you to make informed decisions about securing your child’s academic journey.


Understanding College Savings Planning

Riordan Financial can provide advise on a range of Savings Plans from a number of providers that can be used to fund your Childrens College Fees, ensuring that you build a substantial college fund for your child’s future. This unit-linked plan offers flexibility and long-term investment growth, with the chosen fund option applying for the entire duration of the plan. It is an ideal solution for parents who wish to save for their children’s future, relatives or god-parents looking to set aside money, and investors who are willing to save for a period of 5 years or more.


Why Choose a Child Savings Plan?

By opting for a Child Savings Plan from Riordan Financial, you can accumulate a significant nest egg to cover the cost of college. Small regular contributions made over a long period of time can grow substantially and alleviate the financial burden when your child reaches university. Moreover, while savings in a bank account may be eroded by inflation, the investment growth of a Child Savings Plan can help offset the impact of inflation over time. According to Zurich’s Cost of Education Survey 2019, over 40% of parents in Ireland incurred debt to cover the cost of college. By implementing a Child Savings Plan, you can proactively reduce this unnecessary financial burden.


A Children’s College Savings Plan offered by Riordan Financial provides numerous advantages to parents and their children. Firstly, it provides peace of mind by relieving some of the financial pressure associated with funding your child’s college education. By starting early, you give your child a head start in college and their future careers. Additionally, this plan allows you to maximize the Gift Tax saving by assigning it to your child, leveraging the annual Gift Tax exemption limit of €3,000 from any individual (€6,000 from a married couple). The plan also offers flexibility, enabling you to vary your payments according to your financial situation. Lastly, you have a wide selection of investment funds to choose from, providing you with the opportunity to tailor your savings to your financial goals and risk tolerance.


Determining the Optimal Savings Amount

When considering a College Savings Plan, it’s essential to determine how much you need to save to meet your child’s educational expenses. On average, it costs €10,000 per year to pay for a child’s third-level education, and with the typical college course lasting four years, you may need up to €40,000 per child. By saving as little as €140 per month, generating a 3% annual return on investment, you can accumulate close to €40,000 by your child’s 18th birthday. However, it’s crucial to consult Riordan Financial’s advisors to assess your specific situation, including the length of the investment period, and receive personalized guidance on the optimal savings amount.


Getting Started with a Children’s College Savings Plan


To embark on your child’s college savings journey with Riordan Financial, simply fill out your details and inquiry below. Riordan Financial’s Qualified Financial Advisors will reach out to assist you further. They can provide expert guidance, help you select the most suitable plan, and advise on assigning the policy to your child to maximize gift tax savings. Start early, plan wisely, and secure your child’s future through a Savings Plan.


Investing in your child’s education is one of the most valuable gifts you can give them. A College Savings Plan offered by Riordan Financial offers a strategic approach to saving for college expenses, ensuring financial security and minimising debt. By understanding the plan, recognizing its benefits, and determining the optimal savings amount, you can take proactive steps towards securing your child’s educational journey. Riordan Financial is dedicated to supporting you throughout this process. Contact their team today and explore how a Children’s College Savings Plan and their other financial services can help you achieve your family’s goals.