6 Expert Tips for Parents to Secure Their Child’s Financial Future

The start of a new year is the perfect opportunity to take control of your finances and build better money habits—but it can be hard to know where to start.

Financial success isn’t about being perfect—it’s about progress. Small, consistent efforts can create a strong foundation for long-term stability. Whether your goals are to save for a home, reduce debt, or feel more in control of your money, 2025 is your chance to start fresh. By reviewing your finances, setting realistic goals, and using tools like tax credits and savings plans, you’ll be well on your way to making 2025 your most financially secure year yet.

1. Review Your Finances Regularly

Think of your financial plan as a guide to staying in control of your money. Start by tracking all your income and expenses for one month—groceries, transport, bills, and even forgotten subscriptions. Once you know where your money is going, you’ll see opportunities to cut back, like eating out less or cancelling unused services.

To make this process easier, use Alpha Wealth’s handy Budget Calculator to get a clear picture of your financial situation.

2. Reduce Debt Strategically

Overspending during Christmas is common, especially on credit cards with high-interest rates. Prioritise paying off this debt as quickly as possible before you start saving. Reducing debt gives you more financial freedom and lowers the stress of repayment in 2025.

Pro Tip: Start by tackling the highest-interest debts first—these are costing you the most.

3. Segregate Your Savings

Divide your savings into three pots to keep your financial goals clear:

• Short-term (less than 3 years): For immediate goals like buying a car or holiday expenses.
• Medium-term (3-10 years): For goals like education or major life milestones.
• Long-term (retirement): Invest in tax-efficient options like pensions to maximise growth.

By separating your funds, you can use the right financial tools for each timeline, ensuring your money works harder for you.

4. Maximise Your Savings Returns

Don’t let your money sit in low-interest accounts. For short-term savings, consider online banks like Raisin or Bunq, which often offer rates above 2%. Lock in fixed-term deposit rates now before they drop further in 2025.

Also, take a moment to review your mortgage rate. You might be able to switch to a lower rate and save significantly on your monthly repayments.

5. Boost Pension Contributions

It’s never too early or too late to focus on your pension. Small contributions now can grow significantly over time thanks to compound interest.

Take advantage of the tax relief on contributions—up to 40%. If your employer offers a matching scheme, join it to benefit from essentially free money. Boosting your pension now can make a big difference in your retirement years.

6. Practice the Rule of 72

Impulse purchases can derail your budget. Use the “Rule of 72”: wait 72 hours before making any non-essential purchase. This cooling-off period is particularly useful during January sales, helping you avoid unnecessary expenses while still enjoying genuine bargains.

7. Claim Your Tax Credits

The start of the year is the perfect time to review your tax credits and allowances. Many people are eligible to reclaim up to four years’ worth of missed credits, such as:

• Remote Working Relief
• Rent Tax Credit (€1,500 per individual)

Log in to Revenue’s myAccount or Revenue Online Service (ROS) to update your details and ensure you’re not leaving money on the table.

8. Plan Ahead for Big Expenses

Instead of scrambling for cash when big expenses arise, start saving early. Open a dedicated savings account in January for your 2025 goals, whether it’s a holiday, Christmas, or a major purchase.

For example, saving €167 per month will leave you with €2,000 by summer.

Let Us Help You

Ready to take the first step? Talk to us to learn more about how we can help you achieve your financial goals for 2025 and beyond!

As the dust settles on Budget 2025, many are wondering how the announced measures will impact their daily lives. With a headline figure of €6.9 billion in new spending, the coalition government is taking steps to address a range of societal needs. Here’s a breakdown of the key takeaways from the budget and how they might affect you.

1. Social Welfare Increases

Those receiving social protection will benefit from a €12 weekly increase in payments. Additionally, double payments in both October and December will provide extra help just when it’s needed most. Families with newborns can look forward to a special €420 ‘baby boost’ payment, while maternity, paternity, and parental benefits will rise by €15 a week. These changes offer real financial support for households facing the rising cost of living.

2. Tax Cuts and Reliefs

Taxpayers will feel some relief with the changes introduced in Budget 2025. The entry point for the higher 40% tax rate is moving up to €44,000, so more of your income will be taxed at the lower 20% rate. This will leave middle-income earners with an extra €100 per month. Combined with a 1% cut in the USC, these changes are designed to ease financial pressures and boost your take-home pay.

3. Housing and Renters

First-time buyers will be pleased to know that the Help-to-Buy scheme has been extended until 2029. This allows you to continue receiving up to €30,000 to help with buying your first home. For current homeowners, mortgage interest relief has been extended for another year, a lifeline for those feeling the pressure from rising interest rates. If you’re renting, there’s some welcome news. The renter’s tax credit will increase to €1,000 next year, offering significant relief for tenants battling high rents. Even better, you can backdate this for 2024, so if you’re a jointly-assessed couple, you could claim up to €2,000. That’s a big boost for your bank balance.

4. Students

Good news for third-level students and their families: college fees are being reduced by €1,000, bringing the annual cost down to €2,000. This will provide much-needed financial relief for those navigating the costs of higher education. Postgraduate students will also benefit, with the fee contribution grant increasing from €4,000 to €5,000. This change is a positive step toward making education more accessible and affordable.

5. Health and Wellbeing

Healthcare spending is a significant component of Budget 2025, with additional funds allocated to the Health Service Executive (HSE) to tackle waiting lists and expand services. There will also be further investment in mental health services, an area that has seen growing demand post-pandemic.

6. Vapers and Smokers

If you smoke or vape, you’ll see price hikes on these products. Cigarettes will increase by €1 per pack, bringing the most popular brand to €18.05. Vapers will also feel the pinch, with the price of a typical vape rising to €9.23 next year. These changes aim to promote health, but they will hit younger consumers’ pockets the hardest.

Conclusion

Budget 2025 introduces a range of financial supports designed to relieve the pressure on households as they navigate the cost of living challenges. While Budget 2025 brings positive changes that will help ease financial pressures, it’s important to take control of your finances and make the most of these opportunities. Consider speaking with an impartial financial advisor to get your money working harder.

For the third year in a row, research shows that the cost of living is the top concern for Gen Z and millennials. Deloitte’s 2024 Gen Z and Millennial Survey found that 56% of Gen Z and 55% of millennials live paycheck-to-paycheck. However, nearly half of Gen Z (48%) and 40% of millennials expect their financial situation to improve within a year. Financial freedom is about controlling your finances to enjoy spending today without compromising long-term goals. Daily financial decisions, from routine expenses to long-term investments, shape our financial well-being.” As Warren Buffett said, “Do not save what is left after spending, but spend what is left after saving.”

Four Steps Gen Z and Millennials Can Take to Achieve Financial Freedom

1. Track Your Current Financial Status

The first step to financial freedom is understanding your current financial situation. Track your spending by categorising it into fundamental expenses (rent, groceries), fun expenses (dining out, entertainment), and savings. Aim for fundamental costs to consume less than 50-60% of your take-home pay. Use budgeting tools, like the Alpha Wealth free budget calculator or simple spreadsheets, to monitor your habits and make informed decisions. As Dave Ramsey says, “A budget is telling your money where to go instead of wondering where it went

2. Save and Repay

Given the high cost of living, it can be challenging for Gen Z and Millennials to save and repay debt. However, small steps can lead to big changes. Start by saving at least one month’s worth of living expenses as an emergency fund. Focus on paying off high-interest debt, such as credit cards, and automate your savings to ensure consistency. My advice is to automate savings. This fosters disciplined financial habits, ensuring you save before spending. For example, Sarah, a 28-year-old, tracked her expenses with an app and redirected dining-out funds to savings. She built an emergency fund and started saving in a high-interest account. Three years later, she enjoys financial security and less stress.

3. Invest Wisely

Investing is crucial for building long-term wealth. Allocate at least 10% of your income towards investments. Invest in yourself through education and training to boost your earning potential. Explore passive income opportunities, like high-yield savings accounts, and leverage compounding interest for substantial growth. Take advantage of employer-matching pension schemes to maximise your savings. Never underestimate the power of compound interest. For example, if you start investing €500 per month at age 35, you could have over €190,000 by age 50. Starting at 40, you’d need to invest €1,000 per month to reach the same amount by 50. The key is to start early.

4. Manage Your Finances Wisely

As your income grows, manage your finances wisely and resist lifestyle inflation. Benjamin Franklin warned, “Beware of little expenses; a small leak can sink a great ship.” Instead, increase your investments proportionally. Continuously review and adjust your financial plan to stay on track towards your goals – tracking finances, saving, investing wisely, and managing income. As Robert Kiyosaki said, “Financial freedom is available to those who learn about it and work for it.”

Conclusion

In conclusion, achieving financial freedom requires discipline, strategic planning, and continuous effort. By tracking your current financial status, saving and repaying debt and investing wisely, Gen Z and millennials can build a secure financial future. Remember, the journey to financial freedom is a marathon, not a sprint. By taking small, consistent steps and staying committed to your financial goals, you can enjoy both the present and future without compromising your long-term dreams.