1. Make the Most of a Regular Payment

• Guaranteed Contribution: Child Benefit is a regular, predictable payment from the government. By saving it in an investment account, you can consistently grow this money without feeling an additional financial burden.
• Significant Potential Over Time: Even a modest monthly contribution can grow into a substantial sum with time and compounding returns. For example, saving €140 per month (the current rate for one child) for 18 years can add up significantly. See example below.

2. Benefit from Compounding Returns

• Higher Growth Potential: Unlike standard savings accounts, investment accounts offer the potential for higher returns over the long term. By starting early, the money saved can grow exponentially due to compound interest and market growth.
• Inflation Protection: Investment accounts typically offer returns that outpace inflation, helping to preserve and grow the real value of your savings.

3. Flexible Use of Funds

• Educational Costs: Save for third-level education, which can include tuition, accommodation, books, and other expenses.
• Major Life Events: The funds can also be used for other significant milestones, such as a first car, wedding, or home deposit.
• Financial Independence: When the child comes of age, they can use the savings for a head start in their adult life.

4. Flexibility to Match Your Goals

• Customizable Investments: Investment savings accounts allow you to choose between various options based on your risk tolerance, timeline, and financial goals.
• Gradual Risk Adjustment: For long-term savings, you can opt for higher-risk investments early on (with higher growth potential) and transition to safer investments as your child approaches the age when the funds will be needed.

5. No Missed Opportunity

• Avoid Wasting the Benefit: Many families spend Child Benefit on day-to-day expenses, but by investing it, you turn this regular payment into a powerful tool for securing your child’s future.

Example of Growth

If you save €140 per month Vs Investing in Funds of Medium/High Risk over a 17 year period.

• This demonstrates the power of consistent saving and compounding returns over time. (This is just an illustration, returns aren’t guaranteed)

(Source: Zurich Ignite Conference January 2025)

Final Thought

Saving your Child Benefit in an investment account transforms a routine payment into a meaningful contribution toward your child’s future. It provides financial security, flexibility, and growth potential while teaching valuable financial lessons for both parents and children.

If you would like to discuss more about Savings or to find out more information visit www.savewithgavin.ie  , email gavin@bjrfinancial.ie or Call 022-42466.

By Gavin O’Sullivan BBus., Msc., APA., QFA .,RPA.,SIA.,FPRA  

April 2025

BARRY-JOHN RYAN FINANCIAL PLANNING is registered in the Republic of Ireland, registration number 656922 at 19, West End, Mallow, Co. Cork, P51 KX77.Director: Barry-John Ryan. Bells Cross Capital Limited trading as BARRY-JOHN RYAN FINANCIAL PLANNING is regulated by the Central Bank of Ireland.

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