« Working into retirement becoming a growing trend | Main | Here's why it doesn't really pay to work any more: report »

January 29, 2022

Tuition and teens: why saving makes cents

The younger generation has grown up with a confused sense of their own needs and wants. We get a skewed sense of the necessities of life from advertisers who target us to buy, buy, buy. But when is it enough? Has this generation lost the ability to understand the value of a dollar?

As the holes burn deeper into the teenage pocket, the daunting costs of post-secondary tuition are also on the rise. Statistics Canada reveals a dramatic 15 per cent increase in average Canadian tuition fees since just 2008 ($5,581, up from $4,747), with medicine and law-related degree programs peaking well over $10,000 per year.

That's a high price for what society still considers children. Now, we must ask the question: how are all these payments being met? An answer has grown difficult to come by, as Canada’s youth bracket (15-24 years of age) faced double the unemployment number of Canada as a whole in 2012, a whopping 14.7 per cent of the total population.

*Bing: Is a student loan right for you?

The bottom line: getting a job as early as possible is a no-brainer. Becoming employed as early as 15-years-old means a teen can start saving early, allowing them to cut the amount they would otherwise be required to borrow in loans for post-secondary schooling (avoid interest and think ahead!).

Second, with work comes independence, and what teen hasn’t begged their parents for that more often than we can count? It also allows teens to learn to support themselves, and so they increase their readiness for their post-education years. The moral of the story? Be committed and save smart, as fees continue to rise annually. As we all know, whoever said "what goes up, must come down" clearly never paid for school.

By Brett Cooper



Post a comment


Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...