All college-goers should study the economics of higher education

With the first round of CAO offers due on Wednesday, college, and the expenses associated with it, will be high on the agenda for many households.
Although the government has tried to help cash-strapped students and their parents, cutting the annual student contribution fee from €3,000 to €2,000, financing a child through third level is still a significant drain on any family’s budget.
“The costs associated with attending university often come as a surprise,” says Mark Bracken, student budgeting adviser at Maynooth University. “It can be a very expensive chapter in life, and many students can face financial difficulties.”
According to this year’s TU Dublin cost of living guide, the average monthly overheads for a student living away from home is about €1,600. Rent accounts for the largest portion, at €895 a month, followed by food, travel, and other expenses. For students living at home, the monthly cost of living is estimated to be €596.
Not surprisingly many third-level students who can live at home do so: according to the Zurich cost of education survey, almost 64 per cent live in the family home during college.
One parent of four based in Co Cork says they were fortunate in that their college-aged children were able to pay their student contribution fees from money given to them by their grandfather (he gives them €3,000 each year, which is tax free to them due to the small gift exemption).
This makes a huge difference, she says. While their eldest child has just finished her studies, two others are still in third level and their youngest is awaiting the CAO offers this week. To date, all their children have lived at home to attend college, with two going to University College Cork (UCC) and one to the Cork College of Commerce.
When their eldest child signed up to do a master’s in Dublin City University, for which the fees were €7,400, she moved in with her grandparents in Co Meath to save on rent. She bought a second-hand car and commuted an hour each way every day to Dublin.
For several years, two of her children travelled by bus to and from Cork city to attend college, which was costing them about €50 a week each. “One of the best things the government did from our point of view was cut the bus fees,” she says. Since 2022, when the government reduced public transport fares, the return trip has cost just over €6. Other expenses have included books and computers; for example, two laptops at a cost of about €420 each.
All three college-aged children have had part-time jobs while attending third level, one in an off-licence, one in a nursing home and one in a hairdresser’s. Although they have not yet had to pay for accommodation for any of their children, she says the household budget has definitely been stretched.
“We had to upgrade our wi-fi during Covid, as two of them were doing lectures online,” she says. “Then there’s the extra electricity and food costs, etc.”
However, she puts this in the context of what some of her children’s friends’ parents are having to pay for accommodation in Cork; for example, anyone who has taken a room in UCC’s Crow’s Nest development for this coming year will have to foot a bill of €8,450 to cover the rent.
Bracken recommends that every third-level student creates a budget. This, he says, will help them to gain insight into spending habits, identify areas to cut costs and help set realistic financial goals. “Balancing costs can be a challenge, and although budgeting can take time and effort, it’s worth it in the long run.”
For those renting, the list can be comprehensive, covering rent, heating, electricity and food. For those living at home, commuting costs need to be included in any budget. For example, if a student drives to university, they will need to account for expenses including insurance, tax, maintenance, fuel/electricity, tolls, and parking.
When it comes to cutting costs, make sure you take advantage of any discounts offered based on your age or student status. On public transport, for example, anyone aged 19 to 25 who has a Leap young adult card can benefit from lower fares and/or fare caps across various modes of transport. See www.leapcard.ie for details. “If you’re travelling to university by car, always compare your local fuel stations for the best petrol and diesel prices, and consider carpooling,” Bracken says.
Utilities can eat away at any student’s budget, so putting in a bit of effort to get the best value possible on household bills such as broadband, electricity, heating, mobile phone and current accounts can pay off. “It is worth comparing the plans of different providers or banks to make sure you’re getting the best deal,” Bracken adds.
He recommends reining in grocery expenditure by buying food when it’s on offer, making use of a freezer and/or batch cooking. You can also save by signing up for customer loyalty programmes with various supermarkets. Websites that keep an eye on current offers, such as www.savvyspender.ie, may help you get more bang for your buck.
When it comes to tech equipment and software, TU Dublin reminds students that all universities/higher education institutions can access the HEAnet store, which provides reasonably priced laptops and other equipment. Most campuses also offer a range of free or subsidised services, usually including a GP, counselling and sports activities.
Any tax-paying parents who are covering the rent for a child at college should ensure that they are claiming the rent tax credit, which is worth up to €750 for this year. It can be claimed whether the child is in typical rental or campus accommodation, or in “digs”.
Parents often have to shell out for far more than just rent, however. According to the Zurich study, for example, 77 per cents support their child financially beyond the main expenses of rent, transport and college fees. The average monthly amount given is €259, or €2,331 across the nine-month academic year.
About 66 per cent of parents report that their child has a job while attending college. Although a great way to reduce the pressure on parents and provide an extra income stream, Bracken says it is important to ensure that any job does not have a negative effect on your academic performance and overall wellbeing. “It’s all about finding a balance,” he says.
There are various state supports to help cover third-level expenses for those who need assistance. Among these are the student grants awarded by SUSI (Student Universal Support Ireland), the Student Assistance Fund, which can offer support in addition to any grant under SUSI, the Fund for Students with Disabilities and the 1916 Bursary Fund. And anyone not starting third level until next year could check whether they might be eligible for a scholarship; last year, for example, TU Dublin students collectively received over €500,000 this way.
Finally, if your children are still years away from attending college, you can steal a march on future costs by starting a savings plan now. There are various calculators available online to help you figure out how much you can build up over time. For example, a parent putting monthly child benefit payment, currently €140, into a savings/investment plan from when their child is born until they reach 18, could accumulate a fund worth just under €32,900 after taxes and charges.