Funding post-secondary education
But if you're late getting out of the gate, how do you plan on funding your child's post-secondary education?
Graduating high school students, like my daughter in Grade 12, are just now starting to get their acceptance letters to colleges and universities. And, according to a new report by BMO Wealth Institute, a four-year university degree can cost upwards of $60,000 and yet three-quarters of Canadian parents are not prepared and only half have taken advantage of Registered Education Savings Plans (RESPs).
The report, which examines the cost of post-secondary education and the mistakes parents make when saving for their children's education, also outlines five other options available for saving for your child's post-secondary education. These options include a non-registered account earmarked for education; a Tax-Free Savings Account (TFSA); a Trust Fund; Corporate Dividends; and Life Insurance.
Chris Buttigieg, Senior Manager, Wealth Planning Strategy, BMO Financial Group says it's important to research all the options available to save for your child's education.
"You will likely need more money than you anticipate. Consider one option, or a combination of options, that suit your situation to make the most of your money," he says. "Proper planning will make it easier to save and also set your children on a path to future financial success."
The road to higher education is indeed steep.
By Donna Donaldson, MSN Money
Do you feel you are financially prepared for your child's post-secondary education?