HOW TO PREPARE FOR THE COST OF EDUCATION
When it comes to your savings, it makes sense to talk to your financial adviser. If you’d like to take the next step, get in touch with Shankill Financial Services today.
Providing a child with the best education is what every parent wants for their children – but it doesn’t come cheap. The cost of educating your child can be expensive irrespective of whether your child attends a private or a public school. The problem is that many parents get to grips with the costs when it’s too late and end up having to fund everything out of day-to-day expenditure.
The cost of education in Ireland
The average cost of sending a child to primary school each year is €766. The total cost for one child in primary school over 8 years amounts to an estimated €6,128. The cost of education gets even higher as your child moves into secondary school with that annual average cost rising to €1,629 for a child entering first year. This results in a total estimated cost of €7,734 over the 6 years in secondary school. If you are looking to send your child to a private school, then you will have to cover the fees on top of all the other costs.
The cost of college doesn’t come cheap either. The annual student contribution for university is currently €3,000. If your child was to go on to do a four-year course at university, you would be expected to hand over €12,000, and that’s excluding accommodation, transport, food and book costs! Of course, there are many other expenses along the way – you might want to give them a head start with buying their first home, buying their first car or helping them set up their own business.
So how can you prepare for this expense?
The earlier you start saving, the better. There are many savings plans available which allow you to invest in funds. In recent years money being held on deposit (e.g. in bank deposit accounts) is not earning much interest, that is why investing in a fund that suits your risk profile can be a good option for those who want to set up a long-term savings plan. It is always a good idea to get advice from a financial adviser before choosing an investment product.
By investing your savings regularly through an investment fund(s), you can access a broader portfolio of assets than could be achieved by an individual saver. You can choose a fund which matches your investor profile, in terms of the level of risk you wish to take. It is important to note that this value may decrease as well as increase. Investment returns are not guaranteed.
Some parents choose to save some, or all, of the Government child benefit. If you saved €140 per month for 12 years (as at April 2018) from when your child was born, by the time they started secondary school you could have built up savings of €25,032*.
*A gross investment return of 3.3% per annum is assumed. On encashment, partial encashment, assignment, death or on each 8th anniversary of the policy, tax is deducted on gains made. The figures shown, provided by Zurich, allow for the deduction of tax (currently 37%). Contribution increases of 2.5% per annum are assumed. An annual management charge of 1.25% and an allocation rate of 101% apply. A 1% government insurance levy applies on all contributions but may change in the future.
Source: Zurich Cost of Education Survey & Shankill FS Ltd.
|Warning: These figures are estimates only. They are not a reliable guide to the future performance of your investment.
Warning: The value of your investment may go down as well as up.
COULD YOU BE GETTING A BETTER DEAL ON YOUR MORTGAGE?
“Experts are predicting an explosion in the fixed-rate mortgage market in Ireland as the battle between lenders heats up.”
You could also be saving money on your life insurance policy and mortgage protection
Contact us on 01-2393220 or email@example.com
Most of us are now prepared to shop around when it comes to getting a better deal on household services such as energy providers, broadband and television packages or bin charges but can you say the same for your mortgage provider? Probably not, but unless you are on a tracker mortgage this is something worth considering. Not only could you save yourself thousands of euros over the length of your mortgage with little effort on your part you could also get cash back for switching with some banks offering as much as €3,000.
A recent article in the Sunday Independent highlighted the fact that “experts are predicting an explosion in the fixed-rate mortgage market in Ireland as the battle between lenders heats up.” Permanent TSB, KBC and Ulster Bank are among the banks who have all recently reduced fixed rates for mortgages, meaning potentially savings of hundreds of euro each month for home owners. As a result, numerous mortgage holders are now making the switch to a fixed-rate mortgage from standard variable rates.
Switching is not as complicated as you may think…
Reasons why you may want to consider changing your existing mortgage provider:
- You could avail of a mortgage with a lower annual percentage rate (APR).
- In current market conditions, you may want to switch from a variable rate of interest to a fixed rate of interest.
- Do you want to re-mortgage your home to assist with building an extension or carry out works on your house?
At Shankill Financial Services we consider your personal circumstances before recommending switching provider. We make sure that the savings you would make by switching will outweigh the costs. Shankill Financial Services were Shortlisted for Mortgage Broker of the Year at the prestigious LPI Awards.
Things worth considering before contacting your financial adviser are:
- Is your current mortgage less than 90% of the value of your house?
- How is your credit history?
- Is your income secure?
- If you decide to switch lender, you will probably have to pay:
o a valuation fee, although some lenders will offer to pay this cost.
o legal fees and other charges, but again some lenders may meet this cost or pay a contribution toward it.
o a fee to cover the cost of breaking your fixed rate if you don’t have a variable-rate mortgage.
15% DISCOUNT ON LIFE ASSURANCE POLICIES
Many people do not realise the financial impact that premature death can have on a family. Yet the reality is many families in Ireland remain underinsured. Did you know that only one in three families in Ireland have life cover in addition to their mortgage protection contract. A life insurance policy can cost as little as €30 per month (price estimate based on a 40 year old female non-smoker). Put your mind at rest and talk to us on ph. 2393220 to avail of a discount on a Life Insurance Policy for you.