Children’s Education Plan – Invest in Their Future
The cost of raising a child in Ireland continues to rise—from daily expenses to third-level education fees, all impacted by inflation. With college costs exceeding €14,000 per year for students living away from home, planning ahead is crucial to ensure your child has the financial support they need when the time comes.
A Children’s Education Plan allows you to regularly invest in a tax-efficient way, helping you build a secure financial future for your child. Whether it's for education, a first home, or life’s big milestones, starting early can make all the difference.
Take control of your child’s future—get in touch today to discuss your options.
How a Children’s Investment Plan Works (Bare Trust)
A Children’s Investment Plan allows parents, grandparents, or guardians to set aside money in a structured, tax-efficient way. By legally assigning the savings to the child, you can take advantage of Ireland’s annual Gift Tax exemption:
€3,000 per year from an individual
€6,000 per year from a married couple
These contributions grow over time within a diverse range of investment funds—helping you stay ahead of inflation and maximise long-term returns.
Example: If parents and two grandparents each gift the child €3,000 per year, that’s €12,000 per year tax-free, compounding over time into a significant lump sum for their future.
Not sure how to structure your savings for tax efficiency? Let’s talk—our team can guide you through the process.
Investing Your Monthly Child Benefit – A Simple, Smart Strategy
Many parents choose to automatically save the €140 monthly Child Benefit into an investment plan, creating a structured, disciplined approach to long-term savings.
How much could this grow over time?
Saving €140 per month:
Over 10 years = €16,800 saved (excluding investment growth) {€140 per month x 12 months x 10 years}
Over 18 years = €30,240 saved (excluding investment growth) {€140 per month x 12 months x 18 years}
When combined with investment growth, these savings could significantly reduce or fully cover third-level education costs.
Why Use a Bare Trust for Your Child’s Savings?
A Bare Trust is one of the most effective ways to save for a child’s future, allowing assets to be held in the child’s name while parents maintain control until they turn 18 (or 21 in some cases).
100% belongs to the child – The funds are theirs, avoiding future tax implications for the parents.
Tax-efficient savings – Maximises use of the annual Gift Tax exemption, ensuring no unnecessary taxes on contributions.
No restrictions on use – Unlike State Savings schemes, funds in a Bare Trust can be used for any purpose when the child reaches legal ownership age.
A Bare Trust is ideal for funding third-level education, helping to cover tuition, rent, or living costs without being subject to excessive taxes.
Explore how a Bare Trust can work for your child’s future—get in touch today.
The Cost of Third-Level Education in Ireland
As of 2024, parents of third level students estimated it costs them €9,511, to send their child to third level in Ireland. Although the cost per child for those living at home is €6,033, if a child is in student or rented accommodation, the costs are likely to be much higher (source: Zurich: https://www.zurich.ie/savings-and-investments/education-costs/college/)
With university costs continuing to rise, a structured savings plan ensures you’re prepared to support your child without financial stress.
Start saving now to stay ahead of rising education costs—speak to our experts today.
Simple Ways to Boost Your Child’s Savings
Make Budgeting Work for You
A few small lifestyle changes can add up significantly over time.
Example:
Skipping a €2 daily coffee = €730 per year
Over 18 years, that’s €13,140 saved (before investment growth).
Want to see how small changes can make a big impact? Try our free budget planner.
Make Saving More Rewarding
Encourage long-term financial habits by matching what your child saves.
If they save €10 per week, you could match it with €5.
Offer interest rewards—for example, a bonus at the end of the month if they reach their savings goal.
These small lessons help children understand how investments, pensions, and compounding work later in life.
Teaching Your Child Smart Money Habits
Good financial habits start young. Here’s how you can make learning about money fun and engaging:
Help Them Save Pocket Money – A see-through piggy bank or a credit union account helps them visualise their savings.
Set Exciting Savings Goals – Encourage saving for big milestones like a bike, PlayStation, or first car.
Teach Them to Earn Money – Chores-for-savings help them connect effort with reward.
Introduce Simple Budgeting – Show them how spending choices impact their savings.
By making financial education fun, you’re setting your child up for lifelong financial success.
Secure Your Child’s Financial Future—Start Today
A well-structured Children’s Savings Plan can ensure your child has the funds they need for college, a first home, or key life moments—without unnecessary tax burdens.
Let’s create a savings strategy tailored to your child’s future. Get in touch today to discuss your options.
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