Most Irish parents are making financial sacrifices for their children's education
The uniforms are (mostly) ironed, the lunchboxes are located, and the bank account is already looking a little worse for wear. Back-to-school season has a way of making even the most organised parents feel like they’re one stationery list away from a breakdown — and now new research from AIB confirms what many of us already suspected: the financial pressure of raising and educating children runs far deeper than the September scramble.
A new nationally representative survey conducted by Amárach Research among 2,000 adults across Ireland has found that more than three quarters of parents (77%) expect to make financial compromises to support their children’s education. That’s a significant number, and it tells a story most Irish parents will recognise immediately.
Planning ahead — or hoping for the best?
The research paints a revealing picture of how families are thinking (and not thinking) about future education costs. While plenty of parents are putting money aside in some form, the majority are doing so without any structured plan behind it. Six in ten parents (61%) say they don’t have a clear education-funding plan in place. Just 39% have a dedicated strategy.
It’s not hard to see how this happens. When you’re in the thick of it — managing school runs, childcare costs, after-school activities and the general financial chaos of family life — sitting down to map out college fees for a child who still needs you to cut the crusts off their sandwiches can feel like a very distant priority.
But those years have a habit of moving faster than expected. And the compromises parents are already anticipating making are telling: cutting back on household spending (51%), giving up holidays or lifestyle treats (47%), and dipping into short-term savings (43%) are the top three ways Irish parents expect to bridge the gap when education costs land.
What’s actually happening with Child Benefit?
Child Benefit is one of those payments that quietly lands in accounts every month and gets absorbed into family life in very different ways depending on circumstances. The research found that one in four parents (25%) save their Child Benefit payment monthly, while just 4% invest it. Meanwhile, 40% use it for day-to-day expenses — which, given the cost of living, is entirely understandable and not something anyone should feel judged for.
For families who are in a position to set some or all of it aside though, it’s worth pausing to consider whether simply saving it is the most effective long-term move, or whether investing could make it work a little harder over time. It depends heavily on your individual circumstances, timeline and attitude to risk — which is exactly why getting proper advice matters.
Ciara Ryan, Head of Wealth and General Insurance at AIB, put it plainly: “Many parents are already working hard to put money aside for their children’s education, but our research shows that a large number are doing so without a clear plan in place. For goals that may be five, ten or fifteen years away, there is a real opportunity to consider whether saving alone is the right approach, or whether investing could help families make their money work that little bit harder for them over time. The right approach will be different for every family, which is why financial advice matters.”
The advice gap nobody talks about
Here’s the stat that really stands out: 81% of people surveyed said they hadn’t sought financial advice in the past three years. More than half (57%) said they had never sought it at all.
There’s something almost relieving about seeing that in black and white. So many of us are quietly muddling through, making the best decisions we can with the information we have, never quite finding the time to sit down with someone who actually knows what they’re talking about. It doesn’t make us bad parents or bad planners — it makes us human. But it does suggest that a conversation with a financial advisor is probably overdue for a lot of families.
Building a college fund is already on the radar for many younger parents, with 19% of 25 to 34 year olds and 25% of 35 to 49 year olds naming it as a medium to long-term financial goal. The ambition is clearly there. It’s the roadmap that’s often missing.
AIB’s financial planning team is available to help customers look at their options — whether that’s savings, investments, protection or pensions — and can meet with customers in branch, over the phone, or by video call. If you’ve been putting off that kind of conversation, the start of a new school year isn’t the worst time to finally have it. You can find out more at aib.ie.
Research was conducted on behalf of AIB by Amárach Research among a nationally representative sample of 2,000 adults aged 25+ in the Republic of Ireland between 2nd and 22nd July 2026.