Teen-years at school are the most expensive for parents

- Education costs typically mount up to over €38,000 per child

Research launched today [9th August 2007] by Bank of Ireland Life, will be a major eye-opener for many parents, in particular for the Mums' as they typically decide how the State Children's Allowance is spent or saved.

Highlights of the research targeting parents include:

It was found that while the arrival of the first baby provided the biggest shock to parents financially all agreed that the secondary school years are the most expensive of all. For parents who send their children to private secondary schools there will obviously be hefty fees to contend with, while the majority who choose the public route may be required to pay an annual "voluntary" contribution and many may have to pay for supplementary grinds for their children throughout the year.

It was also revealed that the essentials for children in secondary school were no longer confined to just school uniforms, books, and lunch money, which are onerous enough in their own right - but now include expensive extra curricular activities from modern dance classes and stage school to soccer camps and trips abroad. Mobile phones and phone credit are also essential for any teenager trying to fit-in with their peers, as are the latest branded clothes and hi-tech computer games.

So how much does free education typically cost? Well, for starters, and not allowing for inflation, Bank of Ireland Life estimate it will cost over €38,800 to educate each child to third level.

Commenting on the research results, Bernard Walsh, Head of Investments, Bank of Ireland Life said, "The best time to start saving for your children's education is from day one ? when you start to receive the State Children's Allowance. It's the old adage that what you don't have you won't miss. If we take some lessons from the SSIA scheme, equity SSIAs did significantly better than the deposit alternative, so if it's a few years before your child starts secondary school, a regular savings plan linked to the stockmarket could provide you a superior return. In fact, taking the primary school years alone, a regular saving of €320 or two child benefit allowances in our SmartChoice Education plan, could produce a lump sum saving of over €40,000 to put towards education costs."

The 2006 Census report shows that there are just over 300,000 pre-school children in Ireland today, while the Department of Education says there are over 450,000 children currently attending primary school. The parents of these children will face significant costs at second and third level, saving regularly now could help to ease this burden putting less of a strain on the family budget in years to come.

Sending a child to school from primary right through to third-level education is an expensive exercise, particularly if there is a requirement to source accommodation during the college years. Despite the abolition of fees at third level, the Higher Education Authority (HEA) research shows that 64% of students rely heavily on their parents for financial assistance during their college years.

"It really is quite shocking to see how expensive it is to provide for your children while they are in full-time education. And the funny thing is most parents will have to wait until their child's wedding day to get a thank-you, not that it's ever needed of course!" concluded Bernard Walsh.

ENDS 9th August 2007

Notes to Editors:

SmartChoice Education is Bank of Ireland Life's most popular product solution for parents looking to save for their children's future.

SmartChoice Education is a regular savings plan linked to the stockmarket that includes an innovative 25% loyalty bonus for those who commit to saving regularly for a period of 7 years. In the first year of the plan, Bank of Ireland Life invest an amount equal to 25% of the customer's annual contribution, this sum plus any growth achieved is then added on to the policy providing their regular contributions are maintained for a period of seven years. For example, a customer saving €200 per month will be allocated a bonus of €600 plus growth.

SmartChoice Education requires a minimum payment of €100 per month and has a minimum investment period of 7 years. There is a broad range of fund choices available to customers, from our award winning Evergreen Fund to geared property products and our new Innovator Fund, which invests in new growth areas such as commodities and alternative energy.

For further information contact:
Laura Erskine
Public Relations Manager
Bank of Ireland Life
Ph. 01 617 2586
Mob. 086 856 2929

Audra Dutton
Group Consumer Communications
Bank of Ireland
Ph. 01 604 3750
Mob. 086 818 3932

The Bank of Ireland research referenced in this press release is collated from research projects conducted with a nationally representative sample of parents by Millward Brown IMS in January 2006 and W5 Marketing Intelligence in November 2006.
*Includes expenditure on books, uniforms, and extra-curricular activities, source: Barnardos.
** Includes expenditure on books, uniforms, and extra-curricular activities, source: Barnardos.
*** Includes expenditure for students renting accommodation. The annual cost for a student living at home is estimated to be €3,400. Source: HEA Eurostudent Survey.