Parents of children celebrating their First Holy Communion spend almost €1,000 on the day, making the religious industry worth €57 million, according to a new survey.
Nine and 10-year-olds who received the sacrament are given on average €468 in cash gifts on the day and later spending half of it.
Society of St Vincent de Paul national vice-president John Monaghan said parents will spend the money even if they can't afford to because they do not want their child to stand out from others.
"Our recommendation is to put a little sanity back into it, we need some sense," he said. "It was never right. It was never justified. It is taking away from the sacrament and focusing on the showbusiness. There are a lot of families who cannot afford to do this."
A survey of First Communion habits found spending on the day down 17 per cent, from €1,165 to €967 over the past two years, while the amount of cash children collected was down 18 per cent, from €574 over the same period.
In the years before the recession it was not unusual for parents to hire limousines and bouncy castles, and shell out on expensive dresses, suits, make-up and spray tans.
The study of 1,000 people in recent weeks by Millward Brown Lansdowne for Ulster Bank found children in Dublin earned most, €533, while First Communicants in Munster got €519. Those in Ulster and Connacht were least well-off, getting €369.
Ulster Bank said with almost 60,000 children making their Communion this year, nine and 10-year-olds had €27.9 million to spend and saved €13.3 million.
Aunts and uncles are most generous, giving about a third of all money received.
The survey found children's outfits for the day cost about €213, down a third on the previous two years. Other big spending habits have also been trimmed back, with 25 per cent less now spent on make-up, fake tan and hair for girls.
SvP staff in have been in contact with Catholic bishops raising concerns over the cost of the day. Mr Monaghan warned that advisers are discovering families in arrears on energy bills because the cash they have is paying back money lenders months after the big day.
"Families tend to want to make a fuss," Mr Monaghan said. "But it would be a brave parish priest who would try to introduce rules - many parents would object and say 'you'll not tell me what to do with my child'."
A spokesman for the Catholic Church in Ireland said focusing on money and gifts rather than the spiritual side of a sacrament is not good preparation.
"All the pressure of trying to make these sacramental days special for the child can cause parents a lot of stress," he said. "Bishops and priests are very concerned about the cost issue facing parents with children for First Holy Communion and Confirmation and have discussed this matter in parishes."
The spokesman said the Church's role is limited to sacramental preparation and responsibility for celebrations rests with parents but urged parishes to provide locally-organised and modest celebrations.
PA