It’s something of a mystery, especially for new parents, how children can cost so much. From the moment they are conceived to the moment they leave home, get a job and start paying their own way, children are magnetically attracted to the contents of their parents' wallets and bank accounts – but there are some ways that that attraction can be diminished
1 SUMMER HOLIDAYS
The summer holidays are upon us and for many parents that means only one thing – bored children at a loose end and looking for entert+ainment. Instead of throwing money at the problem and piling off to the zoo for the hundredth time, why not take advantage of the many dirt cheap or completely free entertainment alternatives out there?
Admittedly it takes a bit of advance planning, but an excellent (and free) resource is available in the form of fundays.ie, which lists hundreds of activities for kids, including back-up options for those inevitable wash-out days. "This year there are a number of festivals around the country, some going on over days, which offer free entertainment for all the family," suggests the site's founder Damien O'Neill.
Venues such as Pirates Adventurein Waterford are also offering great deals at the moment, O'Neill says. For an entrance fee of €6.50 on weekdays, children can wear themselves out over two hours of mini-golf, bowling and bouncy-castle fun.
Meanwhile Dunmore Cave, near Kilkenny, offers guided tours for families of four for a snip at €8. Heritage sites and national parks offer "amazing value", he says, while cultural gems in Dublin such as the National Galleryand the Natural History Museumare free.
There are also great savings to be made this summer for families holidaying in Ireland. For example if parents book a package deal with any hotel in the Lynch group (lynchotels.com) this summer, the junior members of the family get to stay and eat for free.
Meanwhile in the four-star Hotel Kilkenny, children get to eat free of charge, (again if their parents are on a package stay), and those aged between four and 12 get free entry to the hotel's kids' club.
2 CUT YOUR HEALTH INSURANCE COSTS
Parents with children under the age of one can potentially save themselves several hundred euro on their health insurance, if they're willing to switch provider and time their renewal dates carefully. Say, for example, a couple insured with Vhihave a newborn baby. The baby will be covered free under their health insurance policy until the next renewal date of that policy.
However Avivadoesn't apply any extra charge for new family additions until the renewal date after the baby's first birthday. This creates a little loophole that can result in sizeable savings for switchers. If the couple above was to switch to Aviva just before their renewal date, and just before their child turned one, they would get up to a year's free cover for their child.
If you have a large family, then you might want to consider switching to Quinn-healthcare. The insurer recently slashed child and student rates by 30 per cent on their most popular scheme, Essential Plus (Excess). From July 1st, the cost of insuring a child or student under this scheme fell from €260 to €183, resulting in a saving of €77 per child.
3 FREE LIFE COVER
According to a survey conducted by Aviva, over 40 per cent of parents have no life assurance other than mortgage protection, and therefore risk leaving their children with inadequate financial provision in the event of their untimely death.
Fortunately there are two offers available at the moment that should help kick-start parents' good intentions. Bank of Ireland Lifeis offering free life cover to all customers who take out a personal or executive pension. The minimum benefit of the free policy is €10,000, and the maximum is €50,000, depending on the premiums paid into the pension in the first year.
Meanwhile, Aviva is offering free life cover of €10,000 to all new parents – regardless of whether they are customers of the insurer – up until their child’s first birthday. This means that the plan will pay out €10,000 if the parent dies before their child turns one. If both parents register individually, the combined benefit rises to €20,000. Simply register on Aviva before your child is six months old.
4 JUMP ON ANY ENTITLEMENTS
Given how cripplingly expensive childcare and schooling can be, it's amazing how slow off the mark parents were to sign up for the Government's new – and completely free – pre-school year.
Under the early childhood care and education scheme, all children aged between three years and three months, and four years and six months on September 1st each year are eligible for a year’s pre-schooling paid for by the State. However the uptake of the scheme was so sluggish that the application deadline for the first term had to be pushed out.
In the end, some 53,000 children were signed up, and are now participating in the scheme, out of a potential 64,000. Clearly a sizeable number of parents failed, for whatever reason, to take advantage of this benefit, which can be worth almost €3,000 a year per child. Make sure you don’t miss out by checking the eligibility rules on omc.gov.ie.
If you're married and work at home minding your children, don't forget to claim the home carer's tax credit. If your income doesn't exceed €5,080 in a year, then you'll be entitled to the full credit of €900.
One the other hand if you’re a stay-at-home parent looking for ways to boost your income (and have major energy reserves) minding one or two other children is an option worth considering. As long as you provide the childminding service in your own home and look after no more than three children, you can earn up to €15,000 per year completely tax-free.
5 AVOID NEW-PARENT PITFALLS
The trick, it seems, for new parents who want to avoid being completely fleeced is not to turn their noses up at bulk-buyingor second-hand shopping. According to research, disposable nappies can drain your wallet to the tune of €540 a year, so make a point of never paying full price by piling your trolley high whenever they're on special offer in your local supermarket. And avoid anything labelled "for kids", for example drinks, yogurts and so on.
“The phrase ‘for kids’ equals rip-off,” one savvy parent told Pricewatch. “Just buy healthy adult versions instead.” Small fortunes can also be saved by buying pre-loved baby paraphernalia online. One classified ad on rollercoaster.ie is currently offering to sell an iCandy Pear buggy, in excellent condition, for €350. To the uninitiated this still sounds bizarrely expensive, but it originally cost more than €800, so the savings are considerable. Nearly-new maternity wear and outgrown children’s clothes can be swapped on theclothesline.ie. Many of the baby outfits are brand new and still have the tags on.
“Under the early childhood care and education scheme, all children aged between three years and three months, and four years and six months on September 1st each year are eligible for a year’s pre-schooling paid for by the State
