Savings for your children’s post-secondary education is probably one of your most important long-term goals. But it’s also expensive. In Canada, students pay on average more than $16,000 per year for post-secondary education. That number will likely be higher by the time your child is ready for university or college.
That’s why it’s important that every dollar you put toward your children’s education goes as far as possible.
With that said, here are four tips to assist you in effectively save for your children’s future education:
- Personal Savings
As a parent, you may feel obligated to help your children pay for their post-secondary education. But you also have daily expenses to think about, as well as your own well-being and future (retirement, for instance), so you should only save what you can afford. Putting your own future at risk so your child can go to college may be a mistake. Fortunately, there are other options.
- Involve Your Children
Encourage your child to take a part-time job to pay at least part of the post-secondary education bill. You can provide more encouragement by matching their contribution.
- Financial Assistance Programs
Consider applying to government assistance and University assisted programs. There
are a range of early funding programs that can give you opportunities to ease the
financial burden of higher education.
- Education Investment Vehicles
The government of Canada offers grants and loans tied to Registered Education Savings Plans (RESPs), which are similar to RRSPs in that the investment grows tax-free until you are ready to withdraw the money for post-secondary education. One of the leading RESP providers in Canada is Ontario-based Children’s Education Funds Inc. or CEFI, an organization that has been helping parents pay for their children’s education since 1991. CEFI’s three distinct RESPs are designed specifically to help meet the investments needs of every type of individual or family.
Even if your child is still very young, it’s never too early to begin saving for their education. A little bit every month put away and perhaps a scholarship can eventually lead to a healthy funding package that can help make your children’s career dreams come true.
