Funding post-secondary education
There's much to be said about a good 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?
Posted by: nashman | Mar 30, 2021 9:16:43 AM
When I went to University in the 70's - my annual tuition was $650 - and I lived in an old 5 bedroom house - $450/month rent = $90/month each guy. Now the outlook is $16,000 - $20,000 per year ... and projected to be a lot more than that in the relatively near future. Calculate that rate increase - why the heck are these costs rising so fast - and so riduculously high compared to other things, like my pay cheque.
Posted by: Sam | Mar 30, 2021 7:29:20 PM
The education pyramid scheme will eventually collapse along with all the other pyramid schemes (CPP,Government & Private pensions, Property etc).
So save, invest and convince yourself that what is happening in all other developed nations won't happen here.
Just don't be surprise if the government pulls a Cyprus on your savings at some point and cleans you out.
Put another way, with record oil prices and massive exports to the BRICS nations, Canada (and Canadians) should have no debt and massive surplus's. But we don't, what happens when it all goes south and interest rates spike? There won't be a flood of immigrants to save the finances then.
Posted by: Mark | Mar 30, 2021 9:18:34 PM
I graduated from university in 2005 from a science program, take my advice .... DONT GO TO UNIVERSITY!
It was the largest waste of money. Learn what you want to learn online from the multitude of free organizations that provide the exact same caliber of learning materials.
Brick and mortar schools that charge for degrees and diplomas are a thing of the past, money drains, brain drains. Save yourself the headache and learn on your own.
Posted by: John | Apr 2, 2021 11:33:12 PM
@Mark...I am glad I didn't take your advice. I spent 10 years in university and earned a BASc and Ph.D My career is extremely lucrative and rewarding. What kind of job do you think you can get without a post-secondary education? Learning on-line????? You cannot learn on-line what you learn through interactions with your professors and classmates. My son is graduating from university in a few months and has a very high paying job already lined up. My daughter is in Med school. Ask them in 10 years or so if they think university was a waste of time.
Posted by: linda | Apr 5, 2021 11:59:05 PM
Why in the world would it cost $60,000? At 5000-6000 annual tuition + books, this figure sounds way too high. Additionally, why wouldn't the student be expected to pay for part? If your kids are able to live at home, there is no way it'll cost anyone that much out-of-pocket. Mind you, that assumes the parents aren't footing the bill for their kids' entertainment, vehicles, cell phones, etc.