BY JOHN ELLIS, FINANCIAL ADVISOR
It is nearly August and you’re staring at your bank account wondering how on earth you’ll cover all those back-to-school expenses without going into the red. Sound familiar? Well, you’re not alone. The Irish League of Credit Unions’ (ILCU) latest survey is out, and it’s got some eye-opening numbers that show just how tough things are getting for families as the new school year draws near.
This year parents of primary school children will spend an average of €1,450, up by €364 on last year. For secondary school families it’s €1,560, up €159. One in three parents are going into debt to cover costs at an average of €376 a household. Last year it was only one in four taking on extra debt of €368. More than a third are having to say no to at least one item their children’s need with new gym gear being the top thing deferred by half of them.
What’s driving these costs up? After-school care heads the list for primary schools at €197 a child. Then there’s the pressure to buy branded items with 59% of parents feeling the strain, up 6% from last year. And as for those ‘voluntary’ contributions that 78% of schools ask for, it’s no wonder 61% of parents think schools aren’t pulling their weight to keep prices down. Overall, 64% see back-to-school as a real financial burden, up from 62% in 2024.
David Malone, the CEO of the ILCU, puts it bluntly: “These findings mirror the bigger cost-of-living squeeze everyone’s feeling.”
More families are making sacrifices with 37% forgoing family holidays (up 6%), and 18% are cutting back on food (up 5% from last year). Unfortunately, that’s not just skipping a treat, its real hardship.
How are parents covering these costs? Monthly income is still the go-to for 74% (down from 80%) with 42% using their savings, up 7%. Credit union loans have tripled to 12% and 36% of households are dealing with over €500 in school debt. Shopping habits have changed too with 64% going online for deals (down from 71%) with 59% hunting for bargains.
Its not all bad news though. The Government’s hot meals scheme. More than three-quarters (78%) want it rolled out to all primary schools. It cuts “food insecurity” for children say 66% and 56% appreciate the savings on lunches.
That a lot of percentages! But behind the statistics there are families stressing out, children missing out and debts piling up. Compared to 2024, the trends are deteriorating with more debt, more denials, and more sacrifices. It highlights how education costs are sneaking into everyday struggles like food on the table.
If you’re feeling the pinch talk with your local credit union. They offer loans and advice without the profit motive. Make your views known in school: tell them to ease up on branded demands and ‘voluntary’ fees. Support expanding the hot meals scheme, “it’s a game-changer”.
And let’s advocate together for subsidies or caps on costs. Every voice counts. Let’s make sure no child starts the year shortchanged.
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