Starting third-level education is an extremely expensive time for parents and students.
According to the 2024 Zurich Cost of Education Survey, the annual cost of college for students living at home was €6,044. For those in rented accommodation, the annual cost was a whopping €16,100.
Whether students are living at home or commuting, it is important that they take control of their finances and become independent from their parents. Here are five tips to kickstart that journey.
Avail of student funding
The first step to getting ready for college financially is availing of any funding available. There are several grants to help break down the financial barriers to third-level education in Ireland, these vary from scholarships to bursaries.
Keep an eye on the Budget 2025, when it is announced, because last year students and parents could get €500 back if they were paying for rented accommodation.
The Student Grant Scheme, also known as SUSI is the main financial support scheme for students studying full-time courses in Ireland and abroad.
There are two types of funding - maintenance grants and fee grants. Maintenance grants help students with their living costs and are paid directly to the student.
Fee grants can pay the Student Contribution and tuition fees for students who do not qualify for the Free Fees Scheme. Fees are paid directly to the college on behalf of the student.
To qualify for funding, students must meet all the eligibility criteria outlined in the relevant legislation. A full overview of the income thresholds and associated grant rates is available on the SUSI website.
The online system is open for applications for the 2024/25 academic year until late autumn/early winter. For more information visit susi.ie.
Set up a student bank account
One of the most important things to do before starting college or entering the workforce is to set up a student bank account. Once you start earning money, it is time to take control of your finances and become independent from your parents and guardians. When you open a bank account you open a window to understanding how money works.
Students will be introduced to financial terms and it is useful to start your credit rating, which you will need if you need to take out a loan. It helps introduce good saving habits and keeps you accountable for your spending.
Current student bank accounts on the market are AIB, Bank of Ireland and PTSB. It is well worth opening a student account once you are over 18 as most banks don’t charge day-to-day transaction fees.
After five years student accounts will convert to a personal current account. The accounts are easy to set up and you just need ID verification, proof of address and that you are attending a third-level institution.
Take up a part-time job
Even though students are under pressure with deadlines and exams, it is important to have some cash flow coming in. If you can only work 20 hours a week or less, there are part-time staff always needed in the hospitality and retail sectors.
Visiting local restaurants, shops and businesses with your CV and a cover letter is a good place to start when looking for seasonal or part-time hours.
Having a part-time job during college helps you to learn how to work and balance your time. Along with this it will fund your social life or pay college fees and expenses.
It will build up your work experience which is an advantage when you are trying to enter the workforce after you graduate. Employers like to see that you were able to balance academics and work while building on your interpersonal skills.
Start a monthly budget
If you are working part-time, availing of the SUSI maintenance grant or getting another source of income, it is important to learn how to make your money last.
A monthly or weekly budget will help introduce smart financial management and result in being able to make your money go further. There is nothing worse than splashing the cash straight after payday and living on beans for the rest of the month.
Money is tight for most students, so it’s important to take account of what cashflow you have to spend at the start of the month and prioritise it based on your needs, rather than your wants.
The first place to start with making a budget is by writing down your income (money in) and expenditures (money out). The 70/20/10 Rule allocates 70% of your income to living expenses, 20% to paying debt, and 10% to savings.
Set realistic financial goals for the short, mid, and long-term. Another great tool for students to use to keep track of their spending and help split bills is Revolut.
You can analyse what you have spent in the last month and it will break it into categories for you. Along with this there is a volt savings function where it will automatically take money out of your account by rounding up your bills.
Have an emergency fund
It is inevitable that at some stage during the college year, an unexpected cost will occur and you will need an emergency fund.
Instead of waiting for this moment to come and ending up having to take out a loan or borrow money, start putting money aside each month.
If you don’t end up using it you can add it to your savings but it is important to have a safety net there. No one can predict what accidents might happen or what situations might appear.
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