Your child’s education: saving and protection together

More than putting money aside

An education plan is more than putting money aside. It is an agreement with your child’s future. If all goes well, you save gradually towards the amount they will need. If something serious happens to you, life cover linked to the goal can make sure their studies are not left hanging.

Either way, the aim is the same: the money is there when your child needs it.

Part one: regular saving

Saving for education works best when it has a date and an amount. The date is usually known: the year your child leaves school. The amount depends on what you plan together: studying in Cyprus or abroad, the length of the course, fees, accommodation and everyday costs.

The earlier you start, the smaller the monthly effort, because the total is spread over more months. A goal that feels heavy for a ten-year-old becomes far more manageable when the child is still a baby.

It also helps to keep education money separate from your emergency fund. That way an unexpected bill for the house or the car does not eat into your child’s goal.

Part two: protection if a parent is no longer there

Saving assumes you will keep working and paying in for years. That is its weak spot. If the parent who funds the plan dies or can no longer work, the savings stop where they are.

This is where life insurance comes in. A sum insured that covers at least the rest of the education goal gives the family the missing money at the moment it is needed. Some plans combine saving and protection in one policy; in other cases it is clearer to keep them apart. Either route can work, as long as you know what you are paying for saving and what for protection.

It is also worth asking what happens if a parent does not die but becomes unable to work. Some plans include a waiver of premium in that case, so the plan carries on.

Why it matters to you

Education is one of the few big goals with a fixed date. It cannot be put off because the family had a hard year. If the plan rests on one or two incomes, the question “what if one of them stops?” matters as much as “how much should we put aside each month?”

There is a tax side too. From 2026, Cyprus gives a deduction from taxable income for each dependent child: €1,000 for the first, €1,250 for the second and €1,500 for the third and each further child. Household income limits apply: €100,000 for families with up to two children, €150,000 with three or four and €200,000 with five or more. Whatever you save in tax can become part of the monthly saving for education. More in our article on the 2026 tax reform.

What you can do now

• Set the target year and a first, realistic amount for your child’s studies.
• Work out the monthly saving you need with the Child education goal tool.
• Check whether your existing life cover also covers the rest of the education goal, not just the mortgage.
• Keep education savings separate from your emergency fund.
• Set a yearly reminder: each time the school year starts, review the amount and the cover.

If you would like a second opinion, book an appointment with an advisor and bring your calculation along.