Securing your child’s future – saving for education, home, and beyond

For almost a decade, Zurich has conducted its annual Cost of Education Survey*, tracking how Irish families prepare financially for their children's future. While education remains a major priority, changing economic conditions have broadened savings goals. 

According to Zurich, rising living costs and housing affordability challenges mean many parents and grandparents are now saving not only for education but also to help children purchase their first home.  

In this Future Ready podcast, Ronan O’Neill speaks with Wayne O'Neill, Senior Financial Planner at Zurich, about how families can build long-term savings plans and make informed investment decisions.  

Why parents are saving differently today 

When Zurich first launched its Cost of Education Survey in 2017, education was the dominant savings goal for most families. Today, the picture has evolved. 

Families are increasingly saving to fund third-level education, help children with a house deposit, support major life events such as weddings  and assist with first-car purchases.

“We're now seeing more and more parents looking to put money away to help children get on the deposit ladder,” Ronan highlights.

Grandparents are also taking a more active role. “We've also seen grandparents starting to save for their grandchildren to help them on the property ladder.” 

The biggest savings goals for families 

According to Wayne O’Neill, two objectives consistently stand out: Education funding and house deposits. Education remains particularly significant. 

Zurich’s research shows: 

• 78% of parents with children in primary or secondary school hope their children will attend third-level education.
• The annual cost of a student living in rented accommodation can range from approximately €15,000 to €16,000. 

These figures highlight the importance of early planning. “The question is how is this going to be paid for,” Wayne O'Neill asks?

Why starting early matters 

A recurring theme throughout the discussion is that time is one of the most powerful tools available to savers. 

“We would strongly advise putting a plan in place as early as possible,” Wayne says. 

Starting early offers several advantages: 

• Smaller monthly contributions can build into substantial sums over time.
• Investment growth has more time to accumulate.
• Families can prepare for future costs without relying on current income when the expense arises. 

Whether saving for university fees or a future house deposit, beginning early can significantly improve outcomes. 

Saving versus Investing: Understanding the difference 

Wayne distinguishes between short-term saving and long-term investing. 

“For goals several decades away, simply holding cash may not be enough. For longer-term savings, it's important to talk to your financial advisor and consider the idea of investing those monies over the long term.” 

One of the main reasons is inflation. “As costs increase over time, money held solely in cash may lose purchasing power. Investing offers the potential to generate returns above inflation.”

General timeframes:

Choosing the right investment approach 

When considering investments, risk is a key factor.  Zurich offers funds designed for different levels of risk tolerance. 

“Zurich offer a range of investment funds depending on your appetite for risk, ranging from low risk up through medium risk and higher risk.” 

The primary difference between these funds is often the proportion invested in stocks and shares (equities). 

Generally: 

• Lower-risk funds hold fewer equities.
• Higher-risk funds hold a greater proportion of equities. 

Understanding risk and Zurich’s Prisma funds 

Wayne highlights Zurich’s Prisma funds, the company’s flagship multi-asset fund range. 

Before selecting a fund, advisors work with customers to establish a risk profile. 

Zurich rates funds on a scale from: 1 (lowest risk) to 7 (highest risk).

“It's about trying to help customers figure out where they sit on the risk ladder,” Wayne explains.

The selected fund should reflect: 

• Financial goals.
• Time horizon.
• Comfort with investment risk.
• Personal circumstances. 

The power of compound growth 

One of the most powerful concepts in long-term investing is compound growth. 

Wayne describes it as: “Getting interest on your interest.” 

For example, if you invest €100 and earn a 5% return, the investment grows to €105. Future returns are earned on €105 rather than the original €100. Over many years, this creates what Wayne calls a "snowball effect." 

“History shows that on average you will be rewarded for taking some extra degree of risk.” 

He also notes that growth is rarely smooth, and investors should expect fluctuations along the way. 

Helping children onto the property ladder 

Housing affordability has become an increasingly important concern for families. 

As a result, many parents are extending their savings horizons beyond education costs. 

“People are now starting to save for even that longer period for helping kids get onto the property ladder.” 

Long-term planning can help create a financial foundation for house deposits, mortgage-related costs  and other major adult milestones.

Tax-efficient saving with the small gift exemption 

Wayne discusses one particularly useful strategy available to parents and grandparents. Under Ireland’s annual small gift exemption: 

• An individual may gift up to €3,000 per year to another person.
• These gifts can generally be made without capital acquisitions tax implications. 

This allows:

• Two parents to gift up to €6,000 annually to a child.
• Grandparents to make similar gifts to grandchildren. 

“It's a very tax-efficient way to avail of the small gift exemption.”

Zurich's Child Saver Plus product was developed to help families take advantage of this opportunity. 

Saving regularly or investing a lump sum 

The conversation also explores different ways families can build wealth. 

Regular saving 

Benefits include: 

• Contributions through monthly direct debit.
• Convenience and automation.

Lump sum investing 

For those with available capital: 

• A lump sum can be invested at the outset.
• It has greater potential to benefit from long-term growth. 

“An initial lump sum… would have a significant effect on the overall performance of the fund over the long term.” 

Useful tools for planning 

Wayne recommends several resources available through Zurich.ie. 

The role of a financial advisor 

Throughout the discussion, Wayne stresses the importance of seeking professional advice. 

A financial advisor can help clients: 

• Understand investment options.
• Assess risk tolerance.
• Select suitable products.
• Build a long-term strategy.
• Navigate the application process.

“The role of the advisor is to explain the differences and help people on the journey.” 

Zurich's website includes an adviser finder tool that allows users to locate advisers based on their location. 

Key takeaways 

• Education and housing are the two biggest long-term savings goals for Irish families.
• Starting early gives savings more time to grow and compound.
• Long-term goals may benefit from investment solutions rather than cash-only savings.
• Risk profiles should be assessed before selecting an investment fund.
• The small gift exemption can provide a tax-efficient way for parents and grandparents to transfer wealth.
• Budgeting tools, education calculators and professional financial advice can help families create effective savings plans. 

“What people really need to do is just put a bit of money away on a monthly basis and start saving.” 

The information contained herein is based on Zurich Life’s understanding of current Revenue practice and may change in the future. 
 
This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice.

*Source: Zurich Cost of Education Survey, 2026